It seems homeowners are turning to second charge mortgages in droves! New figures show that borrowing against your home is more popular than ever.

The amount lent out in second charge mortgages shot up by 17% in the first half of 2024. That’s much faster than any other type of borrowing, leaving even loans for first-time buyers in the dust (they only grew by 13%).

So, just how much are we talking? Well, between January and June this year, Brits unlocked a massive £804 million of equity in their homes using second charge mortgages. That’s TEN TIMES more than the buy-to-let market!

What are people spending the money on?

While debt consolidation and home improvements are the usual suspects, experts say people are increasingly using second mortgages for other things, like paying tax bills and raising deposits for rental properties.

The post-pandemic boom

The trend isn’t new. Since 2019, lending through second charge mortgages has soared by a massive 28% – double the rate of any other type of loan! And while other parts of the market took a hit after the mini-budget chaos last year, second charge mortgages just kept growing.

Why are they so popular?

A second charge mortgage basically lets you borrow against the value of your home without affecting your existing mortgage rate. It can be a cheaper alternative to credit cards or personal loans, especially for larger sums. Plus, you can usually spread the repayments over a longer period.

Is a second mortgage right for you?

It’s crucial to remember that taking out any kind of loan is a big decision. If you’re thinking about a second charge mortgage, it’s essential to seek advice from a qualified mortgage professional to make sure it’s the right choice for your circumstances.

But with more and more people tapping into the equity in their homes, second charge mortgages could be a valuable tool to help you achieve your financial goals.