More choices in the second charge market as the belt tightens!

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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.

We are seeing different lending plans emerge daily and this can only be good news for the borrower. Interest rates and fees are reducing as lenders see this market as a growth area in the longer term.

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.

Are you self-employed and wanting to raise capital?

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In these difficult times raising funds to support your business can be a daunting process.

It has always been more difficult for self-employed people to get a mortgage compared to salaried employees.

At the heart of the issue is a tendency among self-employed individuals to not be able to satisfy loan officers looking to placate their own fears that the borrower will not be able to make good on his or her loan. The good news is that things are changing – at least where second charge loans are concerned.

A recently conducted survey among self-employed borrowers to gauge their view on second charge lending shows the following. 80% of respondents confirmed that second charge loans are now competitive enough to make them worthwhile considering.

The survey tells us something important. It tells us that consumer perceptions of second charge loans are improving among self-employed people. That is no accident. If perceptions are improving, it’s because people looking to borrow are getting better products, better rates, and better service.

Choosing a loan

This is no easy task as there are so many different options open to the majority of applicants. Be sure you know how much you feel comfortable in repaying each month and seek professional independent advice as to the best loan to suit your needs.

We have fully qualified independent advisers waiting who can assist you so please do get in contact.

Record growth in 2nd charges

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June saw second charge lending total £143.3m, helping the sector post its strongest Q2 results since 2007.

It says that Q2 lending for this year is up 7.25% on an “already record-breaking Q1” and that lending year to date has reached £840.2m.

In total, £143.3m was lent through a second charge mortgage as summer began, and while this is a 5.03% drop on May’s figure, it is a 37.41% increase on June 2021.

The number of completions posted in June fell 2% on the month, coming to 3.014, and the average completion time equalled 17.25 days.

The lending market is seeing a shift in the use of second charge loans, “with the number of home improvement loans starting to fall slightly, potentially linked to the rising cost of living and materials.”

A recent report shows that in June, consolidation and home improvements were stated as the reason for 37.20% of second charge loans, home improvements for 15.57%, and consolidation for 41%.

This is a rapidly expanding area of lending and products are increasing to match the demand. Borrowing money these days is a complex issue and it is vitally important to get the right one that meets your needs in both the short and long term. It is always recommended to seek professional advice when taking out any form of loan.

Need some assistance?

If you think this type of loan could assist you in your future planning it is very 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 advisers who will be happy to help you achieve the correct loan for you.

Second charge loans are a serious alternative if you need to raise funds

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The last ten years has seen this type of lending increasing in stature as homeowners become aware of the huge cost of the so called “pay day loan”.

For many years a second charge loan was something clients only did as a last resort due to the high costs compared to a re-mortgage. This has changed dramatically recently as lenders have recognised the potential this type of lending has.

Second charge loans are quick and normally a lot cheaper to set up than a standard re-mortgage.

Before you decide to re-mortgage do take time to explore the benefits this form of lending can offer. Second charges will not suit every situation, but it is worth getting professional advice to see if this could help you.

Most common reasons for a second charge loan:

  • Want to consolidate outstanding loans and credit cards
  • Want to carry out home improvements
  • Are self-employed and wish to raise finance for one of the above

Second charge lending has a bright future and getting stronger all the time

Second charge lenders in the UK are positive about the future with the majority expecting this sector of the mortgage industry to grow, according to a new survey.

The upbeat outlook from the lenders suggests that the use of second charge loans as a financial tool for homeowners to raise capital is becoming far more established.

Can we help?

If you would like more information on how this type of loan could help you please do contact and one of our independent advisers who will be happy to assist.