Getting a second mortgage

Are second mortgage interest rates higher?

The amount that you can borrow through a second mortgage depends on the equity that you have in your property. The equity is the property’s value minus the amount owed on the first mortgage. For example, a £200,000 home with £100,000 remaining on the mortgage offers £100,000 in equity for a second mortgage. While working out how much you want to borrow with this equity secured loan (second mortgage), it is important to remember that the interest will often be higher on your second mortgage. Sometimes it can be more cost effective to re-mortgage rather than take out a second mortgage as the interest rates on second mortgages are often higher.

This increased interest rate needs to be considered when you’re working out whether you can afford the repayments on your second mortgage. If you think that there is any chance that you’ll struggle, it may be wise to reduce the amount borrowed, re-mortgage or opt out of taking a second mortgage altogether.

How can I get the best second mortgage rates?

You can ensure that you get a fair second mortgage deal by using our comparison service, we’ll do all the leg work for you and provide you with a list of options to suit your needs. All you need to do is work out what options we’ve provided are best for you and you’re half way there!