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What are Second Charge Mortgages?

A second charge mortgage is a type of secured loan that allows homeowners to use the equity in their property as collateral for additional borrowing. This loan is called a "second charge" because it is secondary to your main mortgage, which is the "first charge." The amount you can borrow depends on the equity you have in your home and your ability to repay the loan. Second charge mortgages can be a useful financial tool for those who need to access a substantial sum of money but do not want to remortgage their primary mortgage.

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How Second Charge Mortgages can be used

Second charge mortgages offer flexibility in how the funds can be utilised. Common uses include:

Home improvements: Renovating or extending your property to increase its value or improve your living space.

Debt consolidation: Combining multiple high-interest debts into a single, more manageable repayment.

Large purchases: Funding significant expenses such as buying a car, financing a wedding, or covering education costs.

Business investments: Providing capital for business expansion or new ventures.

Emergency funds: Accessing money quickly for unexpected financial needs.

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The Chartwell Difference

Why It's Important to Use a Qualified Advisor for Second Charge Mortgages

Navigating the complexities of second charge mortgages requires expertise and careful consideration. Using a qualified advisor ensures you receive professional guidance tailored to your unique financial situation. Here’s why it’s crucial:

Expert Assessment

A qualified advisor will evaluate your financial circumstances to determine if a second charge mortgage is the best option for you.

Access to Better Deals

We have access to a wider range of lenders and products you won't find on the high street, ensuring you get the most competitive rates and terms.

Comprehensive Advice

Get detailed advice on the implications of taking out a second charge mortgage, helping you understand the costs, risks, and benefits.

Smooth Process

Advisors handle the paperwork and negotiations, making the application process more efficient and less stressful for you.

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What our customers say

See what real customers have to say about their experiences with the Chartwell Funding team

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Duncan and his team worked extremely hard to ensure we could get the best fixed rate available for our remortgage. We felt that we as clients always came first and that Duncan and Chartwell were constantly scanning the horizon on our behalf. Very happy to recommend them to anyone looking for an expert broker to help them with any sort of mortgage need.

Chris

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Great service by Jordan and Daniel
Jordan has been excelent in sorting out our insurance, not only we saved £10 each month, but we got an upgraded plan. Also worth mentioning Daniel, our mortgage advisor. Always proficient in securing the best rates and very patient ensuring that we understand everything.

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Fantastic service. Great communication. They made everything clear and simple. Great company - I wouldn’t go anywhere else now!

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I had a great experience!
I had a great experience with Chartwell Funding, everyone one was so helpful and informative. I always had a lot of questions and everyone happily helped with no bother. A big thank you to Dan and Star who made the process easy for me and always went above and beyond to help me through it. Thank you so much, I really appreciate it.

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Amazing experience with Chartwell
Amazing experience with Chartwell, Duncan and the team really helped me secure a good mortgage for my first home. They were all welcoming, quick with replying and even checked up on me after it went through. I can't thank them enough for making it all feel easy!

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Fantastic and trustworthy company. Once again Matt and his team guided me through the mortgage process checking in throughout and answering any query with efficiency.

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Frequently asked questions

Here are some of the most common FAQs we hear about buying a home

Can I get a second charge mortgage with bad credit?

It is possible to get a second charge mortgage with bad credit, although it may come with higher interest rates and stricter terms. Some lenders specialise in providing loans to individuals with poor credit histories.

What are the interest rates for second charge mortgages?

Interest rates for second charge mortgages are generally higher than for first charge mortgages due to the increased risk to the lender. The exact rate will depend on your credit history, loan amount, and lender policies.

What is a second charge mortgage?

A second charge mortgage is a type of secured loan that uses the equity in your home as collateral. It is called a 'second charge' because it is secondary to your primary mortgage. This means that if you default on your payments, your primary mortgage lender is paid first, and the second charge lender is paid from the remaining proceeds.

How can Chartwell help with second charge mortgages?

Chartwell's expert advisors can assess your financial situation, explain your options, and help you secure a second charge mortgage that meets your needs. They have access to a wide range of lenders and can provide personalised advice to ensure you make an informed decision.

Why would I need a second charge mortgage?

A second charge mortgage can be useful if you need to borrow a substantial amount of money and have equity in your property. It is often used for purposes such as home improvements, debt consolidation, funding a new business, or other large expenses.

How much can I borrow with a second charge mortgage?

The amount you can borrow with a second charge mortgage depends on the equity you have in your home, your credit history, and your ability to repay the loan. Typically, lenders allow you to borrow up to 75-85% of your property's value, minus your existing mortgage balance.

How is a second charge mortgage different from remortgaging?

A second charge mortgage allows you to borrow additional funds without changing the terms of your existing mortgage. Remortgaging involves replacing your current mortgage with a new one, which can potentially offer better rates or terms but might incur early repayment charges.

How do I apply for a second charge mortgage?

To apply for a second charge mortgage, you typically need to provide information about your existing mortgage, your income, expenses, and the purpose of the loan. A mortgage advisor can help you navigate the application process and find the best deal for your situation.

What are the risks of a second charge mortgage?

The main risk of a second charge mortgage is that your home is used as collateral, meaning you could lose your property if you fail to make payments. It's essential to ensure that you can afford the repayments and to consider the long-term financial implications.

How can Chartwell help with credit repair?

Chartwell can provide personalized advice and support to help you understand your credit report, identify areas for improvement, and implement effective credit repair strategies. Our experts guide you through the process, helping you achieve a better credit score and secure more favorable financial opportunities.

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