The beauty of a Second Charge mortgage is in its flexibility to be used for a wide variety of circumstances such as:
- Debt consolidation
- Paying tax bills
- Deposit to buy an investment property
- Business injection
- Paying school fees
In fact a Second Charge can be used for all lawful purposes and with rates starting from 3.57% it may be worthwhile reviewing what Second Charge mortgages can offer your clients like in our case study below.
Debt consolidation and paying for a wedding
Our clients required £30,000 to clear their unsecured debt and an additional £17,250 to pay for their daughter’s wedding.
Situation
- The couple had a property valued at £440,000.
- Their mortgage was £193,000 with a lifetime tracker at 0.35% of BBR.
- Their unsecured debt obligation was costing them £1,800 per month.
- A remortgage was deemed unsuitable as they would forfeit their low tracker rate.
Solution
- We brokered a second charge for £47,250 costing £565.73 per month. This dramatically reduced their monthly outgoings by £1,234.27 a month.
- No upfront costs.
- The Early Repayment Charge was one month’s interest after a month’s notice.
- The second charge was completed in three weeks.
- The clients were able to successfully reduce their unsecured debt payments and pay for their daughter’s wedding.
To you have any questions about Second Charge mortgages that I can answer? Give me a call today on 07572 167174
