If you have a competitive rate on your first mortgage and a long maturity date, you would not want to refinance it earlier than required. HEL enables you to keep your first mortgage as it is, at attractive terms. You would not be liable for any repayment charges on your first mortgage.
Re-mortgaging a property requires a full process again just like the one undertaken for the first mortgage. This means revaluation of the property and rental incomes alongside borrowers’ personal income. However, Scroll can disburse funds within 5 working days (in most cases) through an easy and convenient process.
If you choose to go for HELOC, Scroll provides further flexibility to draw down funds only when you need them. And you will only pay interest for what you use, when you use it.
There will be no impact on the current first mortgage arrangement as the second charge loan will be an independent facility. However, we’ll require consent from your first mortgage lender.