Home ownership comes with many responsibilities and as the years pass those responsibilities grow in number, especially around the decade mark. Rooftops start needing attention, bathrooms and kitchens become outdated, and car parks begin to show wear. Before a home owner has time to turn around their place of residence needs thousands of pounds of attention. Many are able to step into a remortgage with no hang-ups, but others choose to commit to a second mortgage.

Home owners are obtaining financing for items of all types. It is not unusual for them to obtain funding for a new bathroom or even a new car. There are two main ways to secure the funds in order to cover needed expenses. One is a remortgage and the other is a second mortgage.

A remortgage is quite popular for home owners looking to secure a lower interest rate as well as dip into home equity pounds for added financial assistance. However, it often comes with penalties attached with paying off a home mortgage early and stepping into another lending product.

A second mortgage can give a home owner more flexibility although taking on a second mortgage is much more of a commitment than a remortgage. The second home mortgage sits on top of the initial mortgage. The second mortgage typically comes from a different lender than the first mortgage. Any available home equity is used as security to obtain a second mortgage.

The Money Advice Service website offered suggestion to those looking to obtain funding, saying: “If you need to borrow a small amount of money, you are better off going for an unsecured product such as a personal loan. If you don’t have a large early repayment charge on your mortgage and you have some equity in your home and your circumstances haven’t changed, you’ll almost certainly be better off remortgaging or taking out a further advance from the same lender.”