How to Fund Your Second Home Purchase
London is closely followed by the South East and South West of England.
Surpisingly enough the next most popular areas for househunters is The Scottish Highlands and the Orkney Islands also in the North of Scotland.
Could this mean that people are becoming tired and disillusioned with the rat race, and want to sell up and buy their first home in the North of Scotland with it's much slower pace of life and the beautiful scenery with it's lochs, glens and majestic mountain ranges?
I reckon, however that a vast majority of people wanting to escape the rat race do not want to do so on a fulltime basis, but might prefer to buy a second home to use at weekends and holidays.
Once you decide that a second home in a chocolate box Highland retreat is for you, the next question is how to fund the purchase. You can of course approach a building society to arrange a mortgage on your second property, but normally if you already have a mortgage on your first property, a building society will only be be prepared to advance you about 60% of the value of the property. This means that you would have to raise a substantial sum of money to pay the 40% deposit.
A secured loan could therefore be your solution. A secured loan releases equity tied up in your property. Equity is the difference between the value of your property and your mortgage balance. This means that if your first home is worth say £300,000 and you have a mortgage of say £100,000 you have equity of £200,000.
This means that if your second home costs £100,000 you could quite comfortably arrange a secured loan and still leave a fair amount of equity.
Many secured loan lenders are quite happy to grant a secured loan for a second home purchase, while others are not.
It is probably best to look at the internet to seek the services of a specialist secured loan broker who can advise you every step of the way, obtain the best interest rates for you as he will deal with the whole of the secured loan market place.
Subject to your income, status, etc. it should not be too difficult to arrange a secured loan to purchase your second home.
Allow the secured loan broker to handle the financial side leaving you free to search for your property which is surely the best part of all.
There are a number of fishing villages in Morayshire and Aberdeenshire where former fishermen's cottages can be purched very cheaply, sometimes for as little as £45,000.
Another suggested area for your second home purchase is the area around Loch Ness near the capital of the Highlands, Inverness.
I myself was recently in the small town of Drumnadrochit, about twelve miles from Inverness. Standing on an elevated position above Drumnadrochit, to the front was Loch Ness shimmering silver in the sunshine and to my side was a magnificent view right across the whole of beautiful Glen Affric.
I hope this wets your appetite and makes you consider buying your second home in the Highlands.
By arranging a secured loan, the dream can become a reality. Champion Finance
Champion Finance arranges homeowner loans for all circumstances and purposes. Whole of market mortgages and remortgages arranged.
http://www.championfinance.com
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