They are viewed as an alternative way of raising funds instead of remortgaging but there are certain factors that you should consider before you apply.
Firstly, you must be a homeowner to get a second mortgage, though it should be noted that you do not physically need to live in the property.
It allows you to use any equity you may have in your home as security against another loan, meaning you will have two mortgages on the same property.
Second charge mortgage and remortgaging/further Advance?
Maybe you have a worse credit rating than when you first took out your main mortgage or you have an early repayment charge on your mortgage that you will have to pay if you were to remortgage, it might be good advice to offer a Second Charge.
With a second charge mortgage, a higher interest rate will have to be paid on the secured loan, and you will have to pay mortgage arrangement fees. However, this could be less than the cost of having to pay the early repayment charge you would have to pay when remortgaging.