Secured Loan vs Remortgaging

Mr_Sensation

Which is more beneficial?

Taking out a secured loan against the property

Or remortgaging and increasing the mortgage elsewhere?
I have the option to do either, both with similar interest rates

glosoli

Do you mean taking out a second charge? If so inevitably it would be more expensive than if you did it through your mortgage which is secured as a first charge.

Mr_Sensation

Thank-you

Would you mind explaining why it's more expensive taking out a second charge, instead of increasing your mortgage?

glosoli

In the event of re-possession, the lender with first charge gets repaid first, and then if any funds left, those in second place get repaid, and then the third, and so on and so forth, so inevitably those who are not first charge have higher risk, and consequently the rates are higher to reflect that.

Are you sure you are not getting confused with terminology? What examples can you provide that demonstrate the second charge is as competitive as going through a regular mortgage lender?

getmore4less

Not enough information

How similar are the rates?

term of both options

Lender?

LTV?

any ERC for changing lender?

How flexible are both options?

Will your lender agree to the second charge?

will you be ending any fixed term soon

Neutrinno

Mr_Sensation wrote: »

Which is more beneficial?

Taking out a secured loan against the property

Or remortgaging and increasing the mortgage elsewhere?
I have the option to do either, both with similar interest rates

As someone else has already said, you really need to provide more information. Second charges can be a good option if you are looking to borrow but protect a good existing rate or avoid ERC's for example.