More homeowners are taking out potentially expensive second mortgages against their homes to make improvements, repay expensive debts or start a new business.
Ali Hussain from The Times explains a second charge mortgage is a type of borrowing that allows you to use your home as security, is often used to consolidate or pay off more expensive debts.
Aaron Strutt of Trinity Financial told The Times: “Since the pandemic hit, banks and building societies have tightened their debt consolidation rules, making it harder for some to qualify. Second charge rates are much cheaper than they used to be and they do not tend to have early repayment charges. A second charge is often quicker to arrange than remortgaging, or additional borrowing with their existing lender, and the money can be in the borrower’s bank account within a couple of weeks.”