ArticlesReader.com Menu
Newest Articles
Most Viewed Articles
ArticlesReader.com RSS
Submit Article
Login
Signup
Search the articles

Articles Main Categories
Advice
Animals
Automobiles
Business
Career
Communications
Computer Programming
Computers
Entertainment
Environment
Family
Fashion
Finance
Food
Health & Medical
Home & Garden
Humor
Internet Business
Internet Marketing
Legal
Leisure & Recreation
Marketing
Other
Politics
Reference & Education
Religion
Self Improvement
Sports
Technology & Science
Travel
Writing
Subscribe
Receive alert message from us when new articles submitted to our site for free.

Enter your name

Enter your email

Syndicate

















Related Products
Home::Mortgage

Secured Loans / Second Mortgages

Author : Matthew Bourne -
During the past five years lenders have seen a boom in the demand for second mortgages as borrowers look to capitalise on the equity in their home. The low cost of borrowing coupled with the spiralling value of homes in the UK has led to a substantial strengthening of the equity position of many a homeowner. The equity position of some homeowners is in fact so strong that they now find themselves in the fortunate position of having more equity in their home than they have debts secured against their home on first mortgages and other loans.



Buoyed by the healthy state of positive property equity confidence is running high when it comes to homeowners committing to further borrowing. Many are taking the opportunity to secure second and even third charge loans against the equity in their property in order to release cash funds. Even the more conservative borrowers are now beginning to see the light, despite experts predicting of an imminent slowdown in the housing market.



If you're thinking about releasing equity in your home through a second mortgage, here are some things you'll need to consider before you take the plunge: -



Interest rates on second mortgages



The interest rates charged on second mortgages are often higher than those that are levied on first mortgages. This is because lenders see second mortgages as a higher risk than first mortgages and so compensate for this risk through fixing higher interest rates on second mortgages.



The increased risk factor on a second mortgage is down to the fact that these types of mortgages are a second charge on the property. That is to say that in the event of you defaulting on repayment to the point that your home is repossessed, the first mortgage lender legally gets first bite of the cherry when it comes to recovery of the loan. For second loans secured against the property, the lender has to wait its turn, running the risk that it may recover only part of the loan advanced or in some cases none of the loan advanced.



Lending criteria



Different lenders have different lending criteria for second charge mortgages. Whilst all lenders are likely to assess applicants for a second mortgage on the value of their home, their ability to repay the loan and their current income to debt ratio, not all lenders will give the same weight to these factors in the final analysis. This is why you may be rejected by one lender but accepted by another on an almost identical second mortgage offer.



Can you afford the repayments?



For a lender to be convinced that you are able to meet the repayments on a second mortgage, you'll need to be sure how you're going to repay the loan. You should never take on a second mortgage without first planning how you will pay the money back.



Different types of second charge mortgages



There are several different types of second charge mortgages to choose from. Be sure to get information on all your options and select the type of second mortgage that is most suitable for your circumstances. It is advisable to never borrow more than the current equity value in your home.


Article Source: http://www.articledashboard.com





Matt Bourne is currently working for 1 Track Secured Loans





Spam emails More free articles

Related articles


  1. Flexible Mortgages - Offering Relief from the Fixed Mortgage
  2. Unlock your Home Loan Piggy Bank
  3. Home or Investment Property Equity: Be Sure the Bank Gives You All that You Deserve
  4. Refinancing Online - Get The Best Refinance Home Loan You Can Get
  5. A Hud Reverse Mortage For Retirement?
  6. Why Get Pre-Approved For A Mortgage?
  7. Second Mortgage a Good First Step
  8. Fees Paid To Brokers By Mortgage Lenders Are Far Too High
  9. How Not To Be Ripped Off By Mortgage Brokers
  10. Rates May Be Rising: Mortgage And Refinancing Preparation Made Simple For You
  11. "How Much Interest is Your Home Equity Earning?"
  12. A Guide to Selecting a Mortgage Broker in Australia
  13. 5 Steps to Getting on Top of your Mortgage
  14. Comparing The True Cost Of Obtaining A Home Loan
  15. Adjustable Rate Mortgages Offer Alternatives For Home Buyers
  16. How To Determine The Price Of Your Home
  17. Benefits of a Remortgage
  18. Securing a US Commercial Mortgage
  19. Mortgage Elimination- A Horrible and Sure Way to Lose Your Home to Foreclosure
  20. How Homeowner Can Save Their Home From Foreclosure
  21. Are You A Victim Of A Predatory Mortgage Foreclosure?
  22. Home Loans
  23. What Exactly is a Mortgage Broker and How Can He/She Help You Save Thousands on Your Mortgage?
  24. Mortgage Soup
  25. Understanding Mortgage Basics
More related feeds
homeowner rates
Homeowner loans are secured loans for which the borrower has to offer his house as collateral. If you avail a homeowner loan against your house which is already mortgaged, then the homeowner loan becomes a second mortgage loan. ...

Buying a home with bad credit? Bad Credit Auto Loans,Home Loans ...
... loans refinancing refused credit repayment school loan school loan consolidation school loans second mortgage secured secured loan secured loans secured personal loans short term loan short term loans signature loan signature loans ...

Recourse vs. Non-Recourse Loans
The Purchase Money Rule made these loans “non-recourse.” This has come back to bite. It turns out ETRADE has a bunch of California Second Mortgages. Guess what? They are unsecured now because housing prices have fallen so much, ...

Credit Card for People With Bad Credit Home Loans Mortgages ...
advance loans alternative student loans apply for a loan auto loans bad credit auto loans bad credit home mortgage loan bad credit loan bad credit loans bad credit personal loan bad credit personal loans bank loan bank loans boat loans ...

What Should a Homeowner Do When they Need Help?
The borrower can offer the second mortgage lender an unsecured promissory note for a portion of what is owed on the second mortgage. Since the second mortgage loan has little or no value except as a nuisance, any reasonable offer is ...

One Way to Go Green When Remodeling Houses
A home equity loan is a loan that is secured by your home. It is also sometimes referred to as a closed-end home equity loan or a second mortgage and is a fixed amount of money that must be repaid over a fixed term just like your ...

Credit Cards,Gift Cards,Loans,Banking,Insurance Browse,Compare And ...
... loans quick cash quick loan quick loans real estate loans refinance refinance loans refinancing refused credit repayment school loan school loan consolidation school loans second mortgage secured secured loan secured loans secured ...

Definitions of everything you ever wanted to know about real estate!
... rent loss insurance; repayment plan; replacement reserve fund; revolving debt; right of first refusal; right of ingress or egress; right of survivorship; sale-leaseback; second mortgage; secondary market; secured loan; security ...

Mortgage rates still at rock bottom
DBS Bank head of deposits and secured lending Koh Kar Siong said Sibor-pegged loans offer customers more transparency and also allow them to enjoy lower interest rates in the current market environment. Mr Gregory Chan, OCBC Bank’s head ...

Home Equity Loan
In simple terminology, a home equity loan is a loan taken against your house. A home equity loan is also called a mortgage or a second mortgage. Another synonym for home equity loan is equity release schemes. ...

 

 

2007 articlesreader.com - All Rights Reserved