This is a Personal Loan that uses equity in your home for security.
You are permitted to use this loan for the same purposes as an unsecured loan.
You are able to have the repayment term of this loan over a period equivalent to your main mortgage.
Ordinarily we would recommend that you approach your current mortgage lender for a further advance as the rates charged for further borrowing from a mortgage lender (who has the first legal charge over the property) are lower than that of secured loan providers.
The set up fees attached to secured loan lending are normally a valuation of the property and the legal costs of the setting up of the second charge.
You need to be aware that some residential mortgage lenders do not permit second charges to be added, so you need to check with your existing mortgage provider to see if they are acceptable to this or not.
Your home is at risk if you fail to keep up repayments on any loan secured upon it.
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