Second Charge Mortgages??

NICOLAWB

Are there anywhere that still do second charge mortgages? If there does anyone know what interest rate I would be looking at roughly? And what percentage of the property they would usually mortgage up to?
Thanks in Advance
Nx

kingstreet

There are still plenty of lenders offering secured loans. Rates vary according to loan to value, credit history, status etc.

Not my market. Hopefully one of the others might be able to suggest a lender for you.

GMS

Second charge loans vary massively depending upon individual circumstances.

I refer all of mine to a specialist company.

NICOLAWB

Thanks, hadnt thought of it as just a secured loan but suppose it is!
We currently have a £137k mortgage but £4k charge if paid early at the moment. House is worth roughly £195k. Have other debts of 15k we wanted to consolidate and thinking it will be 10k moving costs and the house we want is 250k. So thinking we could port mortgage and try to get secured of £80k is there anywhere you can recommend that might do this? Or can you think of any other options for us?

herbiesjp

You would port and take out the balance with your current lender - so the balance would be at whatever high street deal tehy can offer based on your scenario.

You do not need a second charge loan.

You want to port your current deal, and top up the difference.

GMS

Have a word with your current lender to see if they would loan the additional funds as a sub account. Unlikely to port the current and get a second charge with those figures as almost at 90% LTV with 217k against 250k.

If they wont do it you may need to look elsewhere and pay the Early Repayment Fee

kingstreet

Not a second charge or secured loan scenario.

Apply to your current lender for the whole amount you want to borrow in total, then ask them if you can port your existing rate onto the new mortgage. They transfer the old rate to your new mortgage on completion day, when your old mortgage is paid off by the proceeds of your house sale.

Any extra money you're borrowing over and above what's on the existing rate can be taken on one of the lender's current products.

You do of course have to meet the lender's current criteria and loan to value requirements.

NICOLAWB

My current lender only loan up to 75% of value of property, that swhy I cant just up my mortgage with them. Also my fixed rate ends Feb next year but then reverts to 1.99% plus bank of england rate. So really wanted to keep that rate!
So what do you think I would be best off doing? current rate is 5.5% fixed until Feb 12?

Thanks, this is really healpful!

kingstreet

If you HAVE to move now, you've no choice but to pay the penalty and move to a new lender. Otherwise, see out the remaining time on the fix and only move house when you're out of penalty.

If you can't meet the current lenders loan to value requirement, you need to resign yourself to losing the follow-on rate if you move after the fix ends.

£10k for moving costs seems a bit on the high side and see if you could reduce your other debt if you do decide to put off moving until next year.