Second charge the better alternative for your loan?

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.