Can I take out a second Mortgage on my home

May I take out a second mortgage on my house?

When you are a homeowner, you can take out a loan that is secured against your home. If my interest rate is much too high, what happens? Experts have put together the ultimate guide to buying a home.

Fix 2 years

Financing is obtained by using the available own funds of a real estate as collateral for the mortgage. So if you are selling your home, your first mortgage has precedence. The renovation of your home can be an attractive perspective. Smaller sums, say under 25,000, can be used to check out your uncollateralised credit option.

Exactly which value credit is needed? One of the simplest ways to do this is to find out the amount left over from your mortgage, as this will give you an idea of the LTV that you are likely to save. How about the fees for early repayments? A number of creditors levy a prepayment penalty if a debtor repay their debt before the stipulated financing period; these fees are described in the credit proposal and in the covenant.

When you are likely to pay back the advance, it is essential to ensure a secured early redemption facility or if the early redemption facility ends after a certain amount of e.g. 12 month. However, some mortgage providers offer the possibility of postponing a mortgage redemption; this is usually referred to as "payment leave" and generally allows you to postpone mortgage redemption for an arranged amount of inactivity.

Fortunately, some creditors are offering interest rate option only for a certain amount of time, e.g. 2 or 5 years. Once you are sure that one of the offered credit lines is right for you, the advisor will submit your information to a creditor to determine whether they are willing to grant you credit.

In this way it is ensured that the value of your real estate is high enough to procure the desired funds. Provided that your request is succesful, the creditor will give you a complete list of the characteristics of the mortgage. Bridge credits can quickly make a substantial amount of cash available.

Typical interest rates for interim financing vary between 0.5% pm and 1% pm per month, according to the type of real estate and value of the loans. Our business relations with banking institutions and specialised creditors are close and we can ensure market-leading conditions to satisfy our clients' needs. 1 million pounds repayment!

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