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2008-02-26 02:09:55
Second Mortgages in the UK - Maximizing Your Borrowing Power with a Second Mortgage
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 If you need to borrow a substantial sum of money, then a second mortgage or "secured loan" can be your cheapest and most economical way of doing so.
What is a second mortgage exactly? A second mortgage is when you borrow money against your home. You are "securing" this loan by adding the lender to your mortgage, hence the term "second mortgage". By securing your loan, you are able to borrow much larger amounts of money and pay lower interest rates.
If you chose to take out an unsecured loan, you wouldn't be able to borrow nearly as much (with an unsecured loan, you will have a hard time borrowing over 10k pounds) and you would pay MUCH higher interest rates (15-16% APR compared to the 8-9% of a standard secured loan.
How much can you borrow with a second mortgage?
To figure this out, take the appraised value of your home and multiply that number by 1.25. So, if your home is worth 100k pounds, then you will have a number of 125k pounds. Next, subtract your current outstanding mortgage from this amount. So let's say that you owe 50k pounds on your mortgage; this would leave you with a sum total of 75k pounds. This is your maximum borrowing power. You don't necessarily need to borrow this much; you can borrow smaller amounts if you wish.
What can a second mortgage be used for? Some common reasons for taking out a second mortgage include debt consolidation, home renovations and financing the purchase of a new car. Second mortgages are perfect for those situations where you need to borrow a large sum of money and don't want to pay through the nose to do so.
There are hundreds of firms in the UK that can offer you second mortgages. Let us help you wade through all of the different offers. Simply click on the link below and fill out our five minute application form, and we will scan through our database of 250+ approved lenders to help you find the best deal possible. And of course, there is no obligation!
Apply for a Lending Place secured loan today!
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Get Your Free Loan Offer Today - Click Here
There is NO FEE and you are under NO OBLIGATION!
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Applicants with bad credit history, Mortgage Arrears, Missed payments or CCJs are welcome.
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