Cashpoint

Homes are at risk following a rapid rise in a lesser-known form of debt.

Figures out yesterday from the Finance & Leasing Association show the amount dished out in second charge mortgages rocketed to £259million from April to June – up 36% on the same period last year.

Second charge mortgages are additional loans secured against the equity in homes. Debt charities warn they leave people vulnerable and at risk of losing their properties.

StepChange Debt Charity said: “We’ve seen how second charge mortgages have left people vulnerable to changes in circumstances like drops in income or economic downturns.

“People should be very cautious about taking on second charge mortgages and consider all options.”

You can get free debt advice from StepChange at stepchange.org, or call 0800 138 1111.