While many homeowners dream of the day they will be mortgage-free, growing numbers of people are opting to take out a second mortgage. And they’re using the money to finance everything from home extensions to IVF treatment.
According to the latest data, so-called second charge mortgage lending is galloping ahead and has leapt to its highest level since 2008. During the year to 29 February, £887m of second mortgages were taken out by homeowners. That’s 36% up on the year to February 2015, and more than three times the £293m of second mortgages in 2011-12.
Related: Home truths about remortgaging to pay off other debts
If you need to borrow a small amount of money, you are better off going for an unsecured product such as a personal loanContinue reading...