This is an increase of 11.5% on October’s figure and is the second post-credit crunch record breaking month in a row.

In fact, it’s accurate to say that second charge lending is witnessing its highest period of lending (Q4) since 2008.

In November, over 3,000 loans were written for the first time since 2008, making for a year-on-year increase of 1,000 loans – itself another record.

And second charge lending hit £1.06bn on an annual basis, the first time it has passed the £1bn watermark since 2019.

The only sore spot is completion time slowing by an average of 5.2 days over the month, coming to an average completion time of 22.6 days. It’s widely considered that lenders’ service levels are being met and the increase is more reflective of delays caused by the Land Registry backlog.

Re-mortgage v Second charge

So, why would one opt to take the second charge route rather than re-mortgage?

Lots of reasons actually. For example, many customers have a really good first mortgage deal, maybe a great fixed or tracker rate that they don’t want to give up. Taking a second charge at a higher rate may mean that the blended rate across the whole debt is still lower than a new first deal; so a second charge loan can make good financial sense

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Some borrowers may face a stiff early repayment charge on their first mortgage if they re-mortgage totally. Others may have had a change in their circumstances which means switching to a bigger first charge mortgage is not an option. Perhaps they started a family or changed jobs resulting in a different source of income. Let’s not forget, second charges can be considerably quicker to complete than re-mortgages.

Like to know more?

If you would like to know more about second charge loans please do make contact and one of our advisers will be happy to assist.

The Buy to Let City Tracker provides landlords with an insight into the UK’s best investment hotspots by analysing five key indicators which impact the desirability of locations.

Analysis takes in the average total rent, the best short-term returns through yield as well as the long-term return through house price growth over the past decade.

Aldermore also looks at the lowest number of vacancies as a proportion of total average total of total housing stock and the percentage of the city population in the rental market.

The city which emerged as the number one city, considering all these factors, was Bristol which has risen to the top spot because of the long-term growth of property values in the area along with the lowest number of long-term property vacancies out of all the 50 locations analysed.

Indeed, only 0.6% of rental properties were vacant in the city.

Bristol knocked Manchester off the top spot and down to position four on the table whilst Oxford and Cambridge took second and third places respectively.

London, which ranked third last year, has moved to sixth place on the list but, according to Aldermore, continued to be an attractive investment due to the long-term outlook for property prices, market potential, and relatively high proportion of private renters.

A new entrant to the top ten was Luton, which has risen from 12^th to fifth place in the rankings because of the relative improvement of long-term house prices.

It recorded 5.2% year-on-year house price growth over the last decade, and now has the strongest property price growth of any of the 50 cities, Aldermore said.

The City Tracker shows the UK housing market is rich with diverse and unique conditions across the regions that are ripe for investment opportunities.

As we move towards a post-Covid environment, we hope this analysis gives food for thought to many landlords on where to look for those hidden gems and returns that meet their business strategies.

Private landlords are a central part of the housing market, supporting over 4.5 million households in the UK and, as we emerge from the pandemic, landlords will need to meet the emerging demand for choice and variety from renters.

With the economy opening up and EPC rating changes coming in 2025, now is a great time for landlords to talk with their broker to review where they want to take their portfolios in the future.

October lending was 12% higher than September’s figure of £110.2m, taking the total for 2021 up to £924.6m, meaning it is “almost guaranteed” to surpass £1bn by the year end.

The number of completions jumped 56% year on year to 2,839 in October, marking a new record.

Lending was boosted by new entrant Selina Finance and the removal of almost all pandemic restrictions.

More choices in the second charge market

It is without doubt that secured lending popularity is increasing on a daily basis. Second charge mortgages have increased month on month and continue to do so.

Before you take out a loan of any kind make sure you check whether this form of lending could help you.

Unsecured lending (payday lenders) is so expensive when you analyse the annual interest rates on offer. Homeowners are waking up to this fact and switching to the cheaper and safer secured lending option. 

The largest growth area of loans is to the self-employed and the good news is there are plenty of different plans to suit each individual case. Loans can be fixed for various terms which can give peace of mind, or you may wish to just take the standard discounted variable rate.

Second charge lending is so easy and quick to secure, lenders are increasing their portfolios at a rapid rate. An average case presented will complete in approximately 18 working days, as you can see this is so much quicker than the standard re-mortgage.

Need some assistance?

If you think this type of loan could assist you in your future planning it is particularly important to ensure you get the correct deal 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 you achieve the correct loan for your needs.

October lending was 12% higher than September’s figure of £110.2m, taking the total for 2021 up to £924.6m, meaning it is “almost guaranteed” to surpass £1bn by the year end.

The number of completions jumped 56% year on year to 2,839 in October, marking a new record.

Lending was boosted by new entrant Selina Finance and the removal of almost all pandemic restrictions.

More choices in the second charge market

It is without doubt that secured lending popularity is increasing on a daily basis. Second charge mortgages have increased month on month and continue to do so.

Before you take out a loan of any kind make sure you check whether this form of lending could help you.

Unsecured lending (payday lenders) is so expensive when you analyse the annual interest rates on offer. Homeowners are waking up to this fact and switching to the cheaper and safer secured lending option. 

The largest growth area of loans is to the self-employed and the good news is there are plenty of different plans to suit each individual case. Loans can be fixed for various terms which can give peace of mind, or you may wish to just take the standard discounted variable rate.

Second charge lending is so easy and quick to secure, lenders are increasing their portfolios at a rapid rate. An average case presented will complete in approximately 18 working days, as you can see this is so much quicker than the standard re-mortgage.

Need some assistance?

If you think this type of loan could assist you in your future planning it is particularly important to ensure you get the correct deal 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 you achieve the correct loan for your needs.

A mortgage is no more than a secured loan against an asset by way of a lien. A second charge works in exactly the same way.

In other words, a lender loans money to a borrower so that he / she may buy a property. The loan is conditional upon a variety of terms, one of which is the defined collateral for the debt. In this instance, collateral is another name for ‘security’ and this is secured by way of a lien.

The registration of a loan against a property’s title is referred to as a ‘charge’.

Most properties have only one debt registered against them (because most people take out only one loan when purchasing a property) although sometimes a borrower might extend or add to his or her mortgage during its term in order to raise money, perhaps for a home extension – or a child’s wedding.

From time to time, a homeowner might be unable to raise money through their primary mortgage lender due to their circumstances or the criteria set by the lender. In these cases the homeowner may wish to borrow money, but he cannot borrow it from his existing lender. In these circumstances, it is possible to raise more money by way of a secured loan, with a different lender. It is normal for the new lender to take a second charge against the borrower’s property.

A second charge is a secured loan, but it will have less precedence than a first charge. If the borrower defaults on either the first or second charge, either lender can instigate repossession proceedings. However, the first charge lender gets their money first, and there may not be enough money left to repay the second charge lender. In this case, the lender will have to look at other ways to reclaim their outstanding debt.

The majority of homeowner at some stage of ownership will want to raise extra cash for a venture they have in mind. Raising those funds can be very confusing as many people just do not understand what options are available to them. Ever more popular these days is to raise funds secured on the family home, known as a second charge which is a loan that sits behind the current mortgage secured on the property.

 Second charge market  

Much has been said about the upward trend of the second charge sector over the past year. Brokers and clients alike continue to be surprised at how competitive the rates of interest are plus the wide range of products on offer.

Currently the interest rates on offer are very competitive with some lenders offering the potential to secure even cheaper rates based on risk, second charges provide a valid alternative for clients looking to raise additional funds against their property.

Getting advice is absolutely essential

Very simply the best thing to do if you wish to borrow money is to get independent advice from a fully qualified broker, the independent broker will have access to all loans available to you and will guide you in the correct direction.

Range of deals on offer

Not so long ago in the “seconds market” there was not even a fixed-rate option available, with every second charge product at the lender’s standard variable rate. The fact that discounted and fixed rates have been added to product ranges is testament to the progress of the sector in a relatively short period.

Help?

If you are looking to raise funds against your property please make contact and one of our fully independent advisers will be happy to assist.