Continued growth

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July 2020 saw the second charge mortgage market have its fourth consecutive month of growth, with new business up 19% by value and 14% by volume.

Second charge mortgages can be particularly useful when a homeowner wants to raise additional funds but does not want to change their existing first mortgage – especially where this involves additional costs. They are regularly used to fund home improvements.

The second charge market is performing very strongly, with four consecutive months of growth highlighting the sectors robustness. Consumers and investors have been hit by Brexit and now the Coronavirus, this has not been helped with more recent bad news about a resurgence of Covid-19.

However, this doesn’t seem to have deterred borrowers looking for alternative routes of financing.

The second charge market offers speed and flexibility coupled with very competitive interest rates, its little wonder consumers are taking to this route of financing. 

With the market continuing to accelerate, it’s very important that awareness and availability of second charge loans improves among brokers and consumers alike to help them secure the most suitable financing.

Help?

If you would like to know more about the second charge market and how it could potentially help you please do make contact.

Second charge the better alternative for your loan?

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The second charge loan market has recently been hitting the headlines revealing 3-year high lending figures breaking all recent records.

In years gone by the processes for first and second charge mortgages had been very different, and this proved confusing to most people. Borrowers clearly did not fully understand how a second charge loan worked or how to go about finding out what it could do for them.

One of the factors behind the escalating growth of this sector is driven by the extortionate interest rates being charged by unsecured lenders in particular the “pay day lenders”.

In light of the recent lending figures it is clear recent regulation of the market has resulted in intermediaries or brokers considering second charge mortgages more closely. Regulation has helped align second charges to the mainstream mortgage market and open up more choices for the borrower.

As a result, the division between first and second charge lending has begun to be almost non-existent and this can only benefit all involved.

Second charges warrant consideration

It is believed within the industry that the commitment from the lenders to engage with the intermediaries will be instrumental in the long-term success. As a result of this new found understanding more and more intermediaries have a deeper understanding of second charge lending and the potential benefits it offers clients. It is therefore little surprise that second charge lending is beginning to break all records.

Way forward

Second charge loans do not suit everybody, it is vitally important any potential client seeks the correct advice from a professional qualified independent adviser. If you wish to know more please do not hesitate to contact us.

Homeowners are using second charge loans more and more

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More and more borrowers are turning to second charge loans as mortgage companies tighten controls on borrowing. Figures just released for the last quarter show “seconds” increasing to homeowners by 21% on the previous year, these increases are likely to be down to tighter controls from high street banks and other traditional lenders.

Brokers up and down the country confirm they are using second charges to assist clients in achieving their targets as high street lending becomes more and more difficult. Lending institutions up and down the country confirm, “secured finance is filling a funding gap which has appeared”. “Borrowers are finding it more difficult to obtain loans from mainstream lenders who are implementing tougher affordability restrictions”.

Some 70% of brokers reported a significant increase in secured loans in the last year and the trend seems to be continuing. Of the brokers survey 100% of them stated they found second charge finance extremely easy to use and quick to complete. One broker in Newcastle commented “We have used “seconds” in the past and now we are using them on a more regular basis”. “Clients in general are impressed with the efficiency and speed of completion a second charge loan offers”.

There is little doubt this form of loan should be taken seriously especially when you compare the interest rates being charged by unsecured lenders.

Like too know more?

If you would like to know more about second charge financing and how it could assist you please do get in contact and we will be happy to help.

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Is this a loan that could help you?

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For some homeowners including landlords a second charge mortgage will be a better option than a re-mortgage, so it’s surprising that so many consumers are unaware of what they are and how they work.

There can be several reasons that a second charge might be the preferred option for a loan you may be considering. For example, you may not want to extend the term on your current mortgage or lose an excellent interest rate you currently have.

Demand for this kind of loan, particularly when it comes to funding home improvements or debt consolidation has increased substantially over the past 2 years. One thing which is very evident is that consumers have become much more aware of just how much they are paying for any unsecured loans they may have.

The vast majority of high street banks and standard lenders still continue to show a reluctance to lend on a second charge basis leaving the door open for the specialist lenders. Second charge finance has provided an invaluable resource to those looking to secure finance for their projects quickly and cost effectively.

These days there are some many loan options available to homeowners it is particularly important to get the correct one for you needs. Always seek professional independent advice before taking out any loan secured on a property you own.  

Why choose a second charge loan?

  1. Faster to complete than a traditional re-mortgage.
  2. Attractive interest rates.
  3. Loans are very flexible these days.
  4. Ability to retain current mortgage deal if on a low rate.
  5. Helps the self-employed

Like to know more?

Our independent advisers are fully trained and skilled in all areas of lending so please do call us to discuss any requirements you may have.

Second charge loans are getting a bigger audience these days

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The buy-to-let second charge market provides a range of solutions for borrowers who have perhaps been refused a mortgage by their current lender or high street bank.

Popular second charge lenders are often more flexible in their application criteria and can step in where applicants do not meet the normal mainstream lenders criteria. Landlords can borrow up to 75% loan to value against their buy to let investments with loan repayment terms from 3 – 30 years from a wide range of lenders in this space.

Could this help you resolve your problem 

  • Buy to let Loans accepted for semi-commercial property, flats above shops, non-standard construction homes, HMO and student let properties.
  • First and second charge options
  • Rates from 75% LTV
  • No proof of income or earnings required
  • Proof of rental income from AST acceptable
  • Expat applications welcome
  • No early repayment charges (ERC’s)
  • Raise capital against multiple buy-to-let properties and portfolios
  • No minimum property valuation
  • Loans for Self-employed and professional landlords
  • Applicants with some adverse credit welcome including CCJ’s and defaults

For further key facts and application criteria on these products you should seek independent financial advice.

What lenders are available?

There is a wide selection of lenders who offer secured loans on buy to let properties, many of which however only accept applications via their approved brokers and intermediaries.

Help required

If you would like to know more please make contact and one of our independent advisers will be happy to assist.