What are the Benefits of Securing a Second Mortgage?
A second mortgage enables the borrower to use the equity in their property as collateral to secure another loan. Below mentioned are the benefits of using a second mortgage:
- Get approved even with a poor credit score
Because a second mortgage is secured against your home, you can borrow even with a bad credit rating. Second mortgages are a fantastic option if you are finding it difficult to get approval for a personal loan.
- Payments can be spread over a longer period
Although lenders expect the borrowers to make the repayments over the shortest period possible. A second mortgage can be paid back over as long as twenty-five years.
- Frees your cash up and lowers your monthly outgoings
If you use a second mortgage for debt consolidation, you may be able to cut the amount you pay each month on servicing the debt. The longer the term, the lower the monthly repayments you will be making on your second mortgage. The quicker you repay the loan, the interest amount will be less.
- Get better value than what you’d get from a re-mortgage
If you are considering moving your mortgage to another one in a certain period, an early repayment charge will apply. Even though a re-mortgage offers a lower interest rate, if there is an early repayment charge, you are better off keeping your existing loan and taking out a second mortgage as you get better value.
- Adds value to the property with home improvements
A modern and practical bathroom, or a well-designed kitchen. These are some of the home improvements that many make. If you need funds to renovate your house, taking out a second mortgage for a home improvement is a fantastic way to add value to your property.
- You can free up money with a second mortgage for consolidating debt
Most of us are aware of what it’s like to end up with debts from loans, credit cards, overdrafts etc. You will end up with multiple payments at different times of the month. This is why people sometimes choose second mortgages enabling them to combine smaller debts into one affordable loan. Second mortgages offer a lot of flexibility over the loan amount and the length of time you borrow over the term.
- Managing a big expense
Are you looking for money to pay for your children’s higher education or your wedding? Or are you looking to buy a new car for the family? A second mortgage could help pay off those big expenses.
Apply for a second mortgage in a matter of minutes
An experienced mortgage professional like Sure Loan For You will help you get the second mortgage that fits your budget and specific needs, including guiding you through the entire process and explaining your options. Please do not hesitate to get in touch with our team today to find out more information or to get your free personalized quote.