An Alternative to Remortgaging

An Alternative to Remortgaging

Dear All,

An increasing predicament for some of my clients is that they would like to raise money from their home but have a great mortgage rate which they do not want to lose.

The usual solution to raise extra money, would be to transfer the mortgage to a new lender & to increase the borrowing at the same time.

However, if you have a very cheap rate, it would not make sense to lose this. So the solution is to look at Second Charge Lending. Like first charge lending (mortgages) rates have come down this year. It is now possible to obtain loans at rates between 6-10%.

At first glance, this looks expensive when compared to a mortgage rate of 2%. However, if you have a sizable mortgage & you are paying around this rate, then the extra borrowing at this higher rate makes financial sense.

A further benefit of this option, is that Second Charge Lenders can be more flexible in their approval of loans than normal mortgage lenders.

So, if you would like to borrow money & have a great mortgage rate, then this could be a cost effective option.

To find out more & to get a bespoke illustration of how much it could cost, please get in touch.

Regards

Gary