Could this type of loan help you?

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Many homeowners these days are looking for ways to raise capital which is safe, quick and cost-effective. Over recent years property values have increased year on year and the majority of home owners will be pleasantly surprised to see just what their property is now worth. In the majority of cases, it is more cost effective to raise a loan using the house as security even if you have a mortgage secured against it already. A personal loan from a bank as an example can be very expensive, a second charge loan really does offer a viable alternative,

As an example if your property is currently valued at £240,000 and your current mortgage is £100,000 you have £140,000 equity. There are many good quality lenders who would be interested in a second charge loan/mortgage on the equity within your home. The plus side of all this is the costs are affordable and can be set to your budget.

The plus points of a second charge mortgage

1          Your credit history may well not be so good now and you want to borrow to let’s say extend your current property, this could be the cheapest solution.

2          You may be self-employed and having problems raising finance, this route could be the perfect solution by utilising your property.

3          Repayment terms and periods are very much to your requirements, so they can be tailored to suit your budget.

Need some assistance?

If you think this type of loan could assist you in your future planning it is very important to ensure you get the right one to suit your long-term needs. There are many different lenders offering numerous second charge loans, please do call our fully qualified advisers who will be happy to help you achieve the correct plan for you.

Homeowners should look at second charge lending

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The latest data released has revealed that the average value of a residential property across the UK is still at a very positive level. This information puts the homeowner in a very strong position if they are contemplating raising finance and using the home as security.

Homeowners have choices if they wish to raise capital, they could re-mortgage or take out a second charge loan secured on the equity within the property.

What is equity?

This is very simple to work out, just take the current value of your home and deduct the outstanding mortgage you may have and what is left is known as equity.

Example:

Property Value £250,000 Outstanding mortgage £150,000 Equity = £100,000

Second charge lending has made huge strides in the last 5 years and now should be considered before any decision is made about re-financing your property. Second charge lending offers a fast and effective way to raise capital at a very affordable cost. Interest rates and set up costs offered by lenders have reduced significantly over the last couple of years and now are in line with the mortgage market.

The range of second charge loans are increasing every day with more flexible repayment methods being offered which has found favour with the borrower. Repayment periods are flexible and are generally set to suit the client’s wishes.

Like to know more?

If you are considering taking out a loan please do make contact and one of our fully qualified advisers will be happy to help.

Second charge interest rates are still very favourable

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For the time being second charge interest rates are likely to remain at their all-time lows. If you are considering a new loan now could be the time to make your move, there is a feeling amongst the experts this trend could soon be reversed.

Second charge loan interest rates have been tumbling for months now. A second charge loan could be used as an alternative to a re-mortgage if it fits your lending criteria. Second charge lending is growing in stature and is now a very serious alterative to the once traditional re-mortgage.

One thing you should do if you are contemplating taking out a new loan is to consult an experienced professional adviser as this form on loan will not suit everybody.

Lenders have seen the potential growth in this area of raising funds and have responded well by offering competitive short and long-term packages to suit the majority of requirements. More and more innovative products are coming onto the market all the time which has to be good news for the consumer.

Remember this is a secured form of lending and therefore will in most cases be far cheaper than an unsecured loan.

These days the choices of loans open to homeowners is vast and it is vital to get the correct one to suit your needs. Making the wrong choice could prove to be very expensive over the longer term so do seek professional advice.

Need some assistance?

If you think this form of loan could assist you in your future planning, please call one of our advisers who will be able to guide you in the correct direction.

Second charge lending is far quicker

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Second charge lending continues to grow in stature month on month as homeowners look for loans at affordable rates. Homeowners are becoming very aware of the costs associated with unsecured lending and the so called “pay day lenders”.

A recent survey taken from over 1000 borrowers clearly shows speed of completion is a key factor when taking out a new loan. Obviously, the costs and interest rates were very high on the list of wants but speed was very important.

One of the big appeals of a second charge loan is it meets all the surveys key facts such as costs and speed. On average a second charge loan is completed within 16 working days, this does of course vary dependant on the complexity. This fiscal year has also seen a significant reduction in set up costs plus interest rates are at the lowest ever recorded.

Lenders have seen their market share grow at a rapid rate. They have been quick to recognise the importance of speed in completing a deal as competition increases.

As second charge lending increases in popularity so does the product range, lenders have widened their range of loans and it’s likely there will be one to suit your needs.

There is no doubt second charge lending has had its most successful year in 2017, the good thing is lenders have taken this on board and reacted positively to meet the challenges.

If you are looking to refinance or raise capital for a new venture due consideration should be give to a second charge loan. Please do be aware this type of funding will not suit everybody and it’s recommended to seek professional advice.

Need some assistance

If you think this type of loan could assist you with your future planning, make sure you get the right one to suit your needs. There are many different lenders offering numerous second charge loans so please do call our advisers who will be happy to guide you.