Mortgage: Should you look into 'second mortgages' as new business volumes drop by 71%?

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    If the holder goes on to sell their home, they will need to pay off the second charge mortgage or transfer it to a new mortgage.

    People who are only just managing to repay their initial mortgage may not find a second mortgage to be an appropriate option, with the FLA highlighting that hundreds of people have their properties repossessed every year by second charge lenders.

    Some people may consider using a second charge mortgage to pay off smaller debts (such as credit card bills) through consolidation planning but this could be expensive in the long term.

    Second charge mortgages can run for up to 25 years, meaning that more interest could be accrued over time.



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