What are the alternatives to second mortgages?
Second Charge Mortgage
Whilst a second mortgage can be a great way to finance a second property or raise finance for a home improvement on your existing property, we appreciate that if you need a few thousand pounds, there are alternatives available without having to take out a second mortgage.
Consider remortgaging instead
Instead of getting a second charge mortgage, you can remortgage your existing property. This means switching your current mortgage deal to a new one either with the same or different lender. Remortgaging is common for homeowners that come to the end of the introductory period on their existing mortgage so they are moved to a standard variable rate (SVR) which is higher than average. As a result, switching to a new mortgage should allow the property owner to get a new deal with an improved introductory rate for at least 3 years.
Apply for unsecured loans
A second mortgage can work out really well for some; especially those who are used to making mortgage repayments and have a good credit history. But with the risk of your properties being repossessed if you can’t keep up with repayments, it is always worth exploring financial products that are unsecured.
With unsecured loans, the interest rate is a little higher because you don’t have to put down anything as collateral – but fortunately you don’t risk anything being repossessed that you can’t live without such as your house or car.
At Quiddi Compare, our credit cards page features lots of competitive cards for all kinds of circumstances. Your credit limit will depend on your credit history and income, but you can access 0% interest cards whereby you pay zero interest for a period of time provided you pay on time. We have credit cards for bad credit too so you can still get access to the finance you need but the interest rate will be slightly higher than average.
If you are looking to borrow up to £2,500, we offer a range of instalment loans that offer flexible repayment over 3, 6 or 12 months. If you need money to put towards a large purchase like a car or a wedding, you can receive this kind of loan in one lump sum and repay in monthly instalments.
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
Some partners may charge you a fee for helping you find a Mortgage or Secured Loan or other services they provide. MAKE SURE you check with the company before agreeing to any service if they charge you a fee and what the terms are.
Warning: Late repayment can cause you serious money problems. For help, go to moneyadviceservice.org.uk QuiddiCompare does not charge a fee and does not provide any financial advice relating to mortgages. However we may on occasion receive commissions from IFA’s and mortgage providers, brokers and intermediaries for introducing you to them.
The content of this site is meant to be informational, and it should not be considered financial advice. – See more at:quiddicompare.co.uk/mortgages