Other Loans

Your home may be repossessed if you do not keep up repayments on your mortgage.

Second Charge

A second charge is another term for a secured loan, or second mortgage. In the event that a property is repossessed and subsequently sold; the proceeds from the sale will firstly be used to pay off the outstanding first mortgage and then the balance of any further charges, in order of registration at the land registry - any funds left over will go to the borrower. It is for this reason that second charges are more expensive than first charges, yet less expensive than unsecured loans.

Second charges are a flexible and viable capital raising option for many homeowners who require the finance for a range of different reasons. They can offer a fast solution to a borrowers finance needs and can be used for any purpose. In most cases, loan sizes are made available from £5,000 to £500,000 upwards over terms ranging from 5 years up to 30 years.

The benefit and appeal to many people obtaining a second charge is the speed in which the finance can be arranged, the competitive rates of interest on offer compared to unsecured lending, the minimal charges applied on early redemption, the accessibility and flexibility. It is also a more accessible route of finance where the borrowers income proof is limited or their credit score is lower than most first charge lenders will allow.

Unsecured Loans

An unsecured, or personal loan are both the same thing, but many lenders use either term. They can be used for pretty much anything as the borrowing is not secured against any personal or company assets, such as a home or car.

Loan companies will base their lending decision on your personal credit score (to find out your score, contact Experian or Equifax), and credit history, as well as your ability to repay the loan based on your income.

We have numerous sources of unsecured lenders who we would be happy to put you in contact with should this be a requirement.

Whilst an unsecured or personal loan is not secured against your home or car, failing to keep up with repayments can result in defaults, County Court Judgements (CCJs) or have a negative impact on your credit record which will effect future applications for credit.

Secured and unsecured loans are not regulated by the FSA.