Second Mortgages

Welcome to the Second Mortgages page, a second mortgage is a mortgage on a property that already has a mortgage and is very much like a secured loan. As with secured loans and standard mortgages the loan is tied to the house so if you do not keep up with the repayments the house could be at risk, second mortgages are however a legitimate way of raising money from your home that lots of people choose.

The important thing to keep in mind with a second mortgage is that the rate of interest will likely be higher than the rate of your first mortgage, you do not have to take the second mortgage with the mortgage provider of your first mortgage though so you can shop around for the cheapest rates on second mortgages and this is especially easy online. There are lots of companies online that offer cheap rates on second mortgages and secured loans so you can find a good deal easily, you can also often borrow up to 125% of your homes value minus any outstanding current mortgages and secured loans so there may well be lots of money available that is tied up in your home should you need it.

There are many reasons for wanting to take out a second mortgage with home improvements being very popular, improving your home is a good investment and will likely increase the value of your home. This can make a second mortgage very worthwhile as the increase in value on your home can often cover the cost of the second mortgage and you get all of the advantages of a nicer home too. A second mortgage can also be very useful for emergencies where cash is needed as they can often be cheaper than the high street loans.

You also need to make sure that you can afford the repayments on a second mortgage or secured loan so you should budget for this before you make any decisions, remember that you will have to make two mortgage repayments each month if you take out a second mortgage which will hit your monthly cash flow.