A second-charge mortgage is a type of loan that’s secured against your home, in the same way as your original mortgage. You’ll want to think carefully before taking out a second-charge mortgage, as your property will be at risk if you don’t keep up repayments.
Full guide to second-charge mortgages
Borrow £10,000 to £2,500,000. Prestige Finance allows you to borrow up to 90% of the value of your property, less the outstanding mortgage. The lower the percentage you borrow, the better your interest rate is likely to be. The amount you can borrow will also depend on your credit score.
Repay over 3 to 25 years. Your repayment term will depend on your individual needs and circumstances.
Variable or fixed rates. You can choose to fix your interest rate for a set term to help you budget.
Interest-only option. If you are a buy-to-let owner, you can choose for your monthly repayments to only cover the interest on the loan. The loan itself is repaid at the end of its term from the proceeds of sale of the property, or you will need to have another means of repaying it.
Lender fee. Prestige Finance will charge you a one-off fee when you take out your loan. This figure will be set out in your loan agreement. If a property valuation is needed, you will also be charged for this. There will be a further one-off fee if you are borrowing as a buy-to-let owner.
Security. Your home will be used as security on your loan. Missing repayments will put your property at risk, so always ensure that you can afford the loan you are asking for before you apply.
Overpayments. You can pay more than your set monthly repayments, up to a certain amount, without incurring a charge.
Poor credit ratings considered. Prestige Finance may still be able to lend to you if you have a less-than-perfect credit score. However, your interest rate will be higher than for customers with a good credit history. If you’re not sure what your credit score is, you can access your free credit report easily online via a credit referencing agency.