Second charge loans are proving extremely popular this year!

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With lenders offering lower rates and the majority of brokers charging lower fees, today’s second charge borrower has access to a very real alternative to a re-mortgage or further advance.

Figures recently released by the Finance & Leasing Association reveal that second charge mortgage business increased in May by 14.4% in value and 18% in volume, compared with the same period last year. What is more, consumers including landlords are beginning to gain awareness of the second charge option and to understand how it can assist them.

All of that said, a gap in understanding remains, with a recent survey showing that many consumers remained either unaware or cautious of the sector.

Who can benefit taking out a second charge?

Second charge mortgages are not necessarily the best option for every client wishing to capital raise. Typically, they prove useful for clients who are:

  • Tied into a fixed mortgage with restrictive early repayment charges.
  • Benefiting from an existing low mortgage rate
  • Being offered a further advance with a higher rate
  • Currently on an interest-only mortgage product
  • Wishing to capital raise for business purposes, inclu­ding deposits for buy-to-let mortgages.
  • Recently self-employed or contract workers

Like to know more?

If you would like to discuss your borrowing options please do make contact and one of our fully qualified independent advisers will be happy to assist.

Raising funds via your property in a cost-effective way

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Perhaps you have got plans for the year ahead and want a cash injection to fund things, or maybe you need a new car or home appliance? 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 careful, 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 2021

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 is 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 independent advisers and they will be pleased to guide you.