Could you apply for a second charge loan?

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To apply for a second charge mortgage you do not necessarily need a very good credit score. In fact, in some cases, you may still be able to get a second mortgage with a bad credit score.

In order to be considered for a second charge mortgage you will need be a homeowner. However, you do not necessarily need to be living in the property you are taking out the second charge mortgage on. (Buy-to-Let landlords)

There are a few reasons why you might want to take out a second charge mortgage, but before you determine whether or not you can get one, weigh up your options.

If you have been considering taking out a second mortgage, the first thing to do is to decide how much money you need, and what you will be spending it on.

The main attraction for a second charge mortgage is that people who have a less than perfect or bad credit score can still be in with a chance of being approved.

Another reason why people consider taking out a second charge mortgage is that it could work out cheaper than re-mortgaging when you want to raise extra money. Also, it might be easier to get a second charge mortgage, even if you have a fluctuating income, or are classed as self-employed.

Important is to shop around with lenders. See what their loan rates are like, so you get a good feel of how much APR you could be paying. It is very important to get the loan that fits your needs, so you might want to consider using an independent professional broker. They will have access to all loans available and be able to advise you accordingly.

Need some help?

If you are looking to borrow money and own a property please make contact and one of our advisers will be happy to assist.

Second charges completing in record time

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This year has seen a significant decrease in completion time for second charge loans which is great news for the borrower. Lenders have seen their market share grow at a rapid rate as more clients need to complete their financing quicker than the traditional methods on offer. A straight forward case is now completing in 15 workings days on average.

This is very good news for borrowers as delays can cost money. Completions have seen a 22% reduction in time since the start of the year and lenders are looking at ways to reduce even more.

Second charge loans deliver funding quickly and efficiently which is something high street and private banks just cannot do when re-mortgaging. A recent survey of borrowers clearly shows one of the most important ingredients in funding a deal is speed of completion and the costs involved. The survey showed that traditional re-mortgaging is taking far too long to get funds released and deals falter due to this reason.

A new borrower in the Kent area said, “I have just taken out a second charge loan on my property and found the process efficient and very fast”. “I would have no hesitation to recommend this type of funding, just make sure you explore all the options open to you by getting professional advice”.

Nowadays there is a vast choice of loans available and it is vital to get the correct one to suit your budget and expectations. With talk of rate rises do check out the fixed deals on offer as this could in the longer term save you money.

A second charge loan in days gone by was seen as a very expensive option to raise money. This situation has changed dramatically, so if you are a homeowner looking to raise funds this could be the solution you require.

It is vital to get professional assistance when choosing the correct loan to suit your needs as there are so many different options.

Seeking advice?

Our advisers are fully trained and skilled in providing you with a professional fast service to meet all your financing needs. Please do call us to discuss your requirements.