JP-Financial - Mortgage advisors

Second mortgages – A 5 point strategy to get the best second mortgage

Are you looking for a second mortgage and not sure how to get the best deal. There are plethora of lenders out there, all offering second mortgage finance, ranging from your existing lender to other banks and loan brokers. Do you worry that you have not found the best deal and it will be cheaper elsewhere. If you follow this 5 point strategy you are on the road to getting your second mortgage at a good price.

Ask your current lender.

You already have a mortgage with your lender so pop down to your local branch or call the service centre and ask them what rates and terms for secured loans they can offer to you as an existing customer. Chances are they will not be competitive but this should always be your first point of call.

Search on the internet.

The internet is now full of price comparison sites offering second mortgage loans, click on the sites enter your details and you will be presented with a list of lenders all offering slightly different terms and rates. This is a blunt way as you will not be sure if you qualify with out contacting the lender direct. As many of the best deals have exclusions in the small print

Contact a mortgage broker.

Mortgage brokers have access to specialist sourcing systems similar to those of the comparison sites, the benefit of using a broker is they will also be able to discuss with you the advantages and disadvantages of a particular lender. A mortgage broker will also complete the application on your behalf.

Check the local paper.

Most of the second mortgage providers place regional adverts in newspaper and magazines, offering their latest deals with terms and conditions. A free phone number is normally provided for you to contact them.

Compare against a remortgage

You may find it cheaper to raise extra capital with a standard remortgage, many lenders are offering fee free remortgage deals which can be a cheaper option than taking a second mortgage.

If you follow this five point strategy you should have accumulated a wealth of information on rates, lenders and criteria. After sifting through all the quotes you have received, you should be on the way to getting the most competitive second mortgage out there. Or at least feel comfortable in the fact that you did not take the very first offer.

A secured loan is also known as a second charge loan and is similar to a mortgage as it is secured on your property.

Many people take out a secured loan to pay off outstanding unsecured finance; one of the main reasons to use a secured loan is that they can be cheap and quick to set up with out you having to pay any money upfront for the service. With credit cards rates of 18% APR and higher, a secured loan will save you a fortune in the long run.

There are numerous benefits in refinancing a credit card, with the first being the most obvious, of lowering the monthly payment.  The second benefit is that there will be no incurring debt when the card is paid off with a secured loan, because the amount that is owed will be kept the same, but the debt will be moved to a more affordable repayment method. By using a secured loan to pay off credit cards, it will consolidate the debt, hence making it easier to pay.

A lot of people find that adding credit card debt to a mortgage and then over paying is a much cheaper and efficient way of paying back finance. However if you are currently tied into your mortgage with your current provider, there will be an early repayment charge if you repay the mortgage early. Or you may already be locked into a low rate with your lender and do not wish to come out of this contract.

Some small business use credit cards as a way of financing short term purchases, you may have been to you bank about a business loan and not been successful. A secured loan could be the way of consolidating your business credit cards and helping you move your business forward.

Secured loans are available for people with a low credit score here at J P Financial we have access to bad credit secured loan lenders for the employed and self employed. What ever your situation contact one of our advisers to day about using a secured loan to repay credit card debt.