There may be times when a mortgage is not the most appropriate solution for you and in these circumstances we can look at alternative financing.
A secured loan or second charge is finance borrowed in addition to a pre-existing mortgage. Secured loans are only available to homeowners and work in the same way as a mortgage, with the credit placed against the value of the property.
Although there are some similarities between a secured loan and a mortgage, the two products are completely separate. A secured loan is a different product to a further advance on an existing mortgage that you may have. We can refer you to our panel of lenders for secured loans.
One of the main benefits of secured loans is the fact that they are not linked to the borrowers existing mortgage. By keeping these separate, a secured loan can be taken over a shorter term than the main mortgage account.
For example, if an applicant has 40 years left to repay their main mortgage, they may not want to borrow an additional sum and have to pay interest over such a long period of time. Secured loans can be taken over terms from 5 to 25 years.
Similarly, if a borrower is currently on a fixed rate for their first charge, they may not want to expose their entire mortgage account to a higher rate by remortgaging, particularly if their credit status has deteriorated. They may even have been declined for a further advance on their existing mortgage.
If you think a secured loan is the right option for you, please contact us for further details. In line with the Mortgage Credit Directive (2016), for secured loans we are only able to make referrals to the Intrinsic Masterbrokers hence advice relating to secured loans will be via referral only.