Raising funds cost effectively

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Have you woken up with a bit of a financial hangover after all that festive spending? Perhaps you’ve got big plans for the year ahead and want a cash injection to fund things, or maybe you need a new car or home appliance to get the New Year off to a great start? Well, whatever your reasons for needing a loan, you can now snap one up for the cheapest ever rate.

There is a great choice of loans available these days but do be very careful as a lot of the unsecured deals carry heavy interest rates. Secured lending (second charge) can be very cost effective indeed with record low interest rates currently on offer. They are relatively easy to apply for and funds can be released much quicker than a traditional re-mortgage.

Lowest loan rate on record:

This is the lowest that secured loan rates have fallen, which will delight borrowers looking to consolidate their debts. It has come at a particularly difficult time of year for those who may be stressed over their finances and spending too much over Christmas – paying off an expensive overdraft or credit card should become a priority moving into the new year, so these low rates are likely to attract many consumers.

It’s worth pointing out that these record-low rate second charge loans are unlikely to be around much longer as experts are predicting general rate rises all round. So if you are looking to raise funds it could be a good idea to act sooner rather than later.

Can we help?

If you are looking to raise funds and require help please do contact one of our advisers and they will be pleased to guide you. https://www.second-charge-loans.co.uk/contact/

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Approvals rising sharply for second charge lending

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Christmas has only just passed and we are seeing second charge lending approvals rising rapidly. Homeowners are keen to clear the festive debt accumulated as quickly as possible.

Second charge lending rates remain at record lows. There is a growing feeling among existing UK homeowners that the first rate rise for a very long time could be on the horizon.

More recently, this feeling has been compounded by the quarter point rate hike in the US in December. Most people now accept that rates are unlikely to get any better and are taking action to lock into the competitive rates that are still on offer.

Many homeowners are looking further ahead and are opting for slightly more expensive second charge fixed deals, they still offer extremely good value in the long run should rates rise. The sense that time is running out on the best rates, coupled with the upcoming Brexit talks has kept the market very busy.

The ongoing uncertainty around the full impact of Brexit has spurred many people into action. The philosophy many people have adopted appears to be one of act now while conditions are at least in their favour.

Can we help?

If you are looking for a second charge loan please do make contact and one of our advisers will be happy to assist. https://www.second-charge-loans.co.uk/contact/

 

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Self-employed Need Help?

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It has always been more difficult for self-employed people to get a mortgage compared to salaried employees. For that matter, 2nd charge loans have historically been somewhat harder to obtain for the self-employed as well.

At the heart of the issue is a tendency among self-employed individuals to not be able to satisfy loan companies looking to placate their own fears that the borrower will not be able to make good on his or her loan. The good news is that things are changing – at least where second charge loans are concerned.

Lenders are changing the way they do business in order to better serve self-employed applicants. For example, one specialist lender indicated that it had reduced its tax calculation requirements while others are changing their income criteria to make it easier for borrowers to document their income.

Second charge lenders can do a lot more to help than primary mortgage lenders because they have much more flexibility. They are finally taking advantage of that flexibility to find ways to better serve self-employed borrowers. Even more encouraging is the fact that lenders are coming up with a lot more specialised products.

Need help?

If you would like to know more please do make contact and one of our advisers will be happy to assist. https://www.second-charge-loans.co.uk/contact/

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Second charge loans continue to grow rapidly

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The second charge loans industry has seen massive growth over the past few years, given it used to be a much less visible sector of the lending market.

The facts are the second charge loan market grew by 31% in 2016, with the total size of the sector reaching record levels. What is even more astonishing when you realise that the second charge finance industry has nearly tripled in size over the past four years.

The rate of growth is now slowing down somewhat, which is understandable as greater awareness of the industry and the options it provides is now clearer to homeowners. Having said this, it is also clear many homeowners are still unaware of how a second charge loan works and how it could help them.

It is recommended if you are considering raising secured finance to get professional advice as to which product is best suited to your needs. This type of funding is so much quicker to complete than a traditional re-mortgage and in many cases far more cost effective.

As this market sector continues to build on its successes we are seeing lenders producing more new innovative products to assist the borrower. These are indeed very exciting times for the second charge industry as it looks forward to 2017 and beyond.

Can we help?

If you require more information of how second charge loans can help you, please call us and we will be happy to assist.

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Second charge loans

A second charge loan, what is it?

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A second charge loan, often simply referred to as second mortgages, are a secured loan used to raise extra money instead of re-mortgaging or taking out a personal loan.

A new survey from specialist lenders has found that 76% of consumers do not know what a second charge mortgage is, resulting in homeowners missing out on a potential source of finance.

Of the minority who were aware what a second charge mortgage was, 28% did not understand the difference between this and a re-mortgage.

Despite the changes in the regulation and promotion of second charge mortgages following the Mortgage Credit Directive (MCD), it appears that many homeowners still are not aware of the second charge offering.

For some, a second charge mortgage is a far better option than a re-mortgage, so it’s surprising that so many consumers are unaware of what they are and how they work. If you are looking to raise capital from the equity within your home it is essential to seek professional advice as to the best way to proceed.

Second charge lending is growing in popularity and it is expected to boom in 2017 as the Brexit negotiations commence. Homeowners have made it very clear in recent surveys they want to reduce or consolidate any expensive lending they have.

Can we help?

If you are looking to take out a new loan please do make contact and one of our advisers will be happy to explain all the options open to you. https://www.second-charge-loans.co.uk/contact/

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