Offering More

More to offer second charges:

A recent survey has revealed 84% of brokers around the country plan to include second charge lending in their advice process this financial year. This change of tact has been brought on by Mortgage Credit Directive’s (MCD) rule changes recently introduced.

The new MCD will require brokers to mention the option of second charge loans to clients looking to extend their borrowing. Brokers wanting to describe themselves as “Independent” must now include second charge lending within their scope of services.

Secured second charge lending is increasing month on month as brokers and clients alike see the benefits this form of lending offers. Unsecured loans are common but often very expensive especially the so called “pay day lenders” and clients are looking for viable options.

Lenders have been very quick and positive to react to the increase of second charge lending. They have and are producing many attractive products to suit both short and long term funding. Interest rates historically used to be high on a second charge loan but lenders have addressed this issue well by offering some very attractive deals.

One of the many advantages of a second charge loan is it does not affect the first charge mortgage sitting on the property as a client may have penalties to change. In this case it makes a second charge a very cost effective option and can save thousands on exit fees on the first charge loan.

Need some help?

If you think this form of loan could assist you in your planning please do get in contact and one of our qualified advisers will be happy to guide you in the correct direction.