The best way to go, of course, is to simply get an unsecured personal loan. These may have slightly higher rates than second mortgages (depending on your circumstances), but they aren’t secured against your home and they don’t put you in the position of taking a gamble on future house prices. If you’re left with a choice between borrowing a lower amount with a personal loan or a higher amount with a second mortgage, you should consider cutting back your plans to fit – a personal loan for home improvements, for example, is far less risky.

If you want the money for home improvements, you might find that there are specialist lenders willing to talk to you and lend you more than usual – DIY stores might offer you interest-free credit, for example, during which time you can save up the money to pay. You may also be eligible for various grants or tax breaks from your local council for some kinds of home improvement – phone them up to check.

Another alternative is to remortgage. Many people don’t understand the difference between remortgaging and taking out a second mortgage, but it is quite different. If you remortgage, you move your entire mortgage over to a different provider, at which time you can choose to borrow more than you originally did. This gives you the advantage of keeping all your debt in one place and at a lower interest rate.

Ultimately, if you’re not sure what to do, the best thing is to see an independent accountant or financial advisor who can talk you through your options. It might seem pricey, but in the long run, they almost always save you far more than they cost.