Why is there such rapid growth for second charge mortgages?

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In these challenging times of financing it has become more important to be able to complete a deal within a set timescale. Second charge finance has grown in status year on year and is going from strength to strength since regulation.

A second charge delivers funding quickly and efficiently which is something high street and private banks just cannot do at a competitive rate.

A recent survey of homeowner’s clearly shows one of the most important ingredients in funding a deal is speed and ease of completion. The survey also discovered that traditional lenders are taking too long to get funds released and deals falter due to this reason.

A second charge can be secured on a property and “sits” behind any first charge mortgage both on private and buy-to-lets. A loan without complications can be completed within 14 working days which is considerably less than a re-mortgage.

If you are thinking of reviewing your finances do consider a second charge if a loan is required. Interest rates and conditions are very competitive when compared to a traditional mortgage.

There is little doubt second charge lending has had its most successful year. The good thing about this is the lenders have taken this on board by expanding products to meet the challenges.

These are indeed very progressive times for the second charge finance market as the industry looks forward to 2020 and beyond.

Would you like to discuss your funding needs?

If you wish to raise a loan secured on a property you own please do make contact and one of our independent advisers will be happy to assist.

Home improvements and the second charge

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Second charge lending has always been a popular choice for people carrying out home improvements. In many instances, where the improvements are likely to result in a significant increase in the house price, it can be beneficial to take a second charge mortgage to pay for the work and then re-mortgage at the higher property value and, therefore, a lower LTV. This approach could help a client benefit from a lower first charge mortgage rate in the long term.

Payment of a tax bill

At this time of year, we also see demand from some clients who want to use a second charge mortgage to pay a tax bill.

Second charge mortgages are becoming a competitive way for borrowers to raise funds on their existing property and it could be possible for a homeowner to raise a second charge on their residential property in order to fund the payment of the tax bill.

A number of lenders are also offering this type of borrowing as an equitable charge, which can sometimes be processed faster than a traditional second charge mortgage.

Lenders will generally want to know why the client didn’t have provision in place to pay the bill and will look for some reassurance that they are able to pay future bills, but there are more providers happy to lend on this basis.

There are many opportunities where a second charge mortgage could be the most appropriate fund-raising solution. But you should seek independent professional advice before committing as making an error can be very costly over the long term.

Can we assist?

When taking out a new loan you should seek professional independent advice, we have a team of experts waiting to take your enquiry so please do make contact. 

Coronavirus – Looking to raise funds?

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We are living in very strange times and many things are not clear, if you are looking to raise funds as and when this crisis is over it is strongly recommend getting the “ball rolling” sooner rather than later.

All experts are predicting there will be a huge surge of lending applications later in the year, so getting your requirements in place now would be a sensible move.

Second charge lending delivers much quicker

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 1000 homeowners 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 also.

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 15 working days, this does of course vary dependant on the complexity.

The last financial 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. One major lender commented “The last 12 months has seen huge changes within the second charge market with faster completions being a key factor to winning business”.

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

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 independent advisers who will be happy to help.

Coronavirus – Looking to raise funds?

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We are living in very strange times and many things are not clear, if you are looking to raise funds as and when this crisis is over it is strongly recommend getting the “ball rolling” sooner rather than later.

All experts are predicting there will be a huge surge of lending applications later in the year, so getting your requirements in place now would be a sensible move.

Second charge interest rates are reasonable and stable

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 independent 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.

Very important when considering taking out a loan

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.

Like to talk over your options?

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