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Second Mortgage For Debt Consolidation

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For raising finance from your home to consolidate debts

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Second Mortgage For Debt Consolidation

Clifton private finance

We specialise in sourcing mortgage finance on residential and buy to let property transactions in the UK

We provide second charge mortgage solutions for UK residents looking to consolidate debt.
  • Second Charge Mortgages from £25,000
  • Loans for consolidation of expensive debt
  • Market leading rates
  • Up to 85% loan to value
  • Term - 1 to 30 years
  • No early redemption fee options
  • No legal cost options
  • Finance can be arranged for drawdown in 14 to 20 days
We can deliver enhanced, bespoke or exclusive terms through our market knowledge.  
Call us on 0203 900 4322 to discuss your requirements.

 

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Skip to:

What is a second charge mortgage for debt consolidation?


How does a second charge mortgage work?


What else can I use a second charge mortgage for?


Second charge mortgage calculator


Will a second charge mortgage hurt my credit?


Can I get a second charge mortgage even if I have a bad credit rating?


How do I get a second charge mortgage for debt consolidation?

What is a second charge mortgage for debt consolidation?

A second charge mortgage is a mortgage taken out against a property that already has an existing mortgage. So if you need to raise additional funding to manage any finance issues you might be experiencing, a second charge mortgage could be a suitable option.

Second charge mortgages can allow you to borrow money through your property without the need to remortgage completely. They can be a cheaper, more practical solution to raise finance against your existing property.

If you run into financial struggles at any point, additional financial burdens can lead to accumulating debt. In cases like these, a second charge mortgage can help you raise money to pay off your outstanding debt and manage your capital.

  • You can borrow 6 times your income or more.
  • They can be quick to arrange (2-3 weeks)
  • And you have greater flexibility with what you can use funds for.

See similar: How to get a fast second charge mortgage

A second charge mortgage can also allow you to combine debt, making the repayments more manageable. 

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How does a second charge mortgage work?

It’s called a "second charge" mortgage because it will be second in line for repayment. So, your original mortgage has priority in being repaid first, followed by your second charge mortgage.

It's particularly useful for borrowers who don't want to change their primary mortgage deal but still want to raise additional funds. 

And because it's a second charge, there will be a focus on your property's equity. So if you have already paid off a large part of your mortgage, you may be able to borrow more for your second charge mortgage.

When used appropriately, taking out a second mortgage to consolidate your debt, reduce it or roll your payments into one could simplify any financial difficulties you might be facing.

Learn about the benefits of second charge mortgage in our short video below:

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What else can I use a second charge mortgage for?

Second charge mortgages aren't just used to pay off debt. They are commonly used to finance home improvements or extensions and can also be used to fund weddings, medical expenses or even start a business.

Because you have already been accepted for a previous mortgage on your property and most likely have paid off a portion of that portion already, the lending criteria for second charge mortgages can be more relaxed. 

This flexibility surrounding the purposes of your second charge mortgage is what can make it a good option for debt consolidation

Some types of debt that a second charge mortgage can be used for are:

  • Personal Loans
  • Credit Card Debt
  • Buy Now Pay Later Debt
  • Replacing A High Interest Bridging Loan
  • Short-Term Development Finance

As well as this, lenders can have more relaxed criteria regarding your Loan to Income ratio (LTI) for second charge mortgages, and you may also be able to borrow more than 4.5 times your income. 

Want to know how much you can borrow? Use our second charge mortgage calculator below:

Second charge mortgage for debt consolidation

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Will a second charge mortgage hurt my credit?

While it's true that a second mortgage can have implications for your credit, the overall effect will depend on a few factors, as well as how you manage your finances. Applying for a second mortgage could cause a temporary dip in your credit score due to the hard inquiry performed by lenders.

However, if you make timely payments and demonstrate responsible debt management, your credit score will gradually recover and improve over time. Consistently meeting your financial obligations and keeping your debt-to-income ratio in check are key factors in minimising any negative effects on your credit.

Consulting an experienced mortgage broker can provide personalised insights into your individual circumstances and help you navigate any potential impact on your credit.

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Can I get a second charge mortgage if I have a bad credit rating?

Having a bad credit rating can indeed pose challenges when seeking traditional loans or mortgages. However, when it comes to second charge mortgages, there is still potential for obtaining financing even if you have a less-than-ideal credit history.

While mainstream lenders could be hesitant to extend credit to individuals with bad credit ratings, there are specialist lenders who cater specifically to this market segment. These lenders can take a more holistic approach, considering factors beyond just credit scores, such as the equity in your property and your ability to make repayments. They understand that past financial difficulties shouldn't necessarily dictate your current borrowing capabilities.

By working with these specialist lenders and providing supporting documentation, such as proof of income and explanations for any past credit issues, it is possible to secure a second charge mortgage even with a bad credit rating. However, it's essential to note that the terms, interest rates, and loan amounts may differ compared to those offered to borrowers with good credit.

At Clifton Private Finance, we have relationships with a variety of private lenders who may be able to take a more flexible approach to your finance options. We have experience working with individuals with complex circumstances, and can help you explore suitable options and improve your chances of obtaining the finance you need.

How do I get a second charge mortgage for debt consolidation?

If you're not sure where to start, it can be beneficial to seek advice from a specialist mortgage advisor. They can help you decide whether this is the most appropriate option for you and can use their market knowledge to find you the best rates.

If you would like to find out more information or discuss your situation specifically, get in touch with our experts at Clifton Private Finance, and we can help you find the best option available to you.

You can book a no-obligation, free telephone consultation to discuss your needs and situation.

Or call us on 0117 313 5719 to discuss your requirements.

Book Consultation »

 

 
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Second Mortgage For Debt Consolidation Service

Specialist 2nd Charge Mortgage Service Providing:

  • Expert advice on your second charge finance options
  • Solutions for complex income and unusual circumstances
  • Access to both high street and specialist lenders
  • Short and long term lending options
  • Professional service

 

Call us today to discuss your requirements on 0203 900 4322

Second Charge Mortgage Calculator

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This information is computer-generated. It has only been designed to give a useful general indication of costs. Make sure that you read the separate key facts lender illustration before you make a decision. To get a full mortgage quote contact us.

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