Secured Loan Query

gstir_2

Just wondered, is it possible to have 2 secured loans on the same address? I;ve read things saying thats it can be done, but most people I;ve asked say no.
Can someone clarify this for me please?

Rabiddog_2

Yes you can, But I presume it would be very costly and unwieldy. If you want more money why would you not go to either your first Lender or to your second lender. Also they will be able to see moneys already lent on your property.Any further lender will be very suspicious of your motives. Unless this is some £1m++ house?

PeteJones

When you take a mortgage, it places what is called a 'fist charge' on your property. That means the land registry details show a charge is registered, so if you try to sell your house, the 'chargee' or mortgage company has to give consent. They will either insist their charge is cleared (ie paid off) or may consider transferring the charge to a new property (very rare these days).

When you take a secured loan, they register the charge behind your current mortgage, hence this becomes a 'second' charge. Sames issues, move house, lender wants their cash back.

NOw there are a number of lenders that will consider a 'third' charge, however this is obviously more risky. If your house is repossessed, the charges are paid back in order. Therefore, the first charg will probably get all of their money, the second charge most of their money and the third charge could potentially get nothing. Third charges are often therefore more expensive to cover the risks involved.

What you can do is go for another second charge that will consolidate your current one. Ie if you currently have a secured loan with First Plus for $40000 and want another $20000, take a new secured loan for $60000.