Second charge loan costs reducing

/in /by

The costs of second charge finance in 2017 is likely to be less expensive than last year, great news for the borrower indeed. Interest rates and fees have reduced significantly over the last six months as finance companies battle for a slice this ever-growing market. We are also seeing new incentives added to packages including assistance in funding any survey costs that may be required. These measures are normally reserved for the main mortgage market but we are seeing more offers creeping into the “seconds” sector.

2017 has got off to a flyer as more and more people see this type of financing as a very efficient way to go forward. Brokers up and down the country are reporting more clients want to complete quickly and are looking to the second charge market to meet their needs.

With the promise of quicker completions from the lenders the “seconds” market most certainly looks to have a strong year ahead.

If you are contemplating raising finances in the near future it would do no harm to find out whether this type of funding could assist you. Second charge lending has become a cost-effective alternative to re-mortgaging, completing quicker and in most cases have far cheaper set up costs.

Find out more

We pride ourselves on service, so if you need any assistance or want to discuss a potential deal do call us. Our expert advisers are experienced in all areas of lending and look forward to being of assistance.

https://www.second-charge-loans.co.uk/contact/

Reducing

 

 

Second charges completing even faster

/in /by

This year has seen a significant decrease in the time it takes second charge loans to complete which is indeed great news for the borrower. Lenders have seen their market share grow at a rapid rate as more clients need to complete their financing quicker than the traditional methods on offer, time is money as they say!

This is very good news for borrowers as delays can cost money. Completions have seen a 20% reduction in time since the start of the year and lenders are looking at ways to reduce even more.

The market for second charge financing continues to grow month on month as more borrowers see this form of loan more convenient and cheaper in the long run. This trend looks set to continue well into 2017 and beyond.

A second charge loan in days gone by was seen as a very expensive option to raise money. This situation has changed dramatically, so if you are a homeowner looking to raise funds this could be the solution you require. It is vital to get professional assistance when choosing the correct loan to suit your needs as there are so many different options.

Seeking advice?

Our advisers are fully trained and skilled in providing you with a professional fast service to meet all your financing needs. Please do call us to discuss your requirements and we will do our very best to assist you.

https://www.second-charge-loans.co.uk/contact/

complete

 

Second charge awareness

/in /by

The second charge mortgage market must keep pushing the education message if it wants to continue to progress

Second charge loans are still increasing but not at the rates all experts had predicted. It’s a niche market of course, but it needs to be a bigger niche market. The influx of business all expected post-MCD has not happened and there is a need to do a better job in terms of educating the consumer. For some it’s still seen as a loan of ‘last resort’ and that should not the case.

All agree that second charges could fill a vital function: a second charge mortgage is a good way to help with debt consolidation; Saving money in both the long and short term if used correctly.

It seems there is a hangover with second charges in that they are viewed as expensive products, which they are not compared to unsecured alternatives.

Second charge loans are very flexible these days and offer a vast range of products to suit the majority of needs.

Before you take out a loan do seek professional advice as to what loan would suit your needs. The range of secured loans is daunting if you are not an expert and making a mistake with the wrong one could be very costly.

Can we assist?

If you would like advice with your next loan, please get in contact and one of our advisers will be happy to help.

https://www.second-charge-loans.co.uk/contact/

second charge

Self-employment on the increase

/in /by

The latest figures from the Office for National Statistics show self-employment is at its highest point since records began over 40 years ago, this means nearly 15% of UK workforce is now self-employed.

This ever increasing sector of the UK workforce is probably the most in need of specialist lenders. A large number of high-street lenders appear not to be interested in them at all as they see them as high risk. This also applies to not only the self-employed but pretty much any working person in non-standard employment. Regular lenders seem to class this category of the work force as “too difficult” thus the need for specialist lenders.

If you are self-employed and have a current mortgage a second charge loan could be just the help you are looking for. Second charge loans are fast to complete and far more flexible than any re-mortgage. A second charge loan offers a quick affordable solution to raising cash secured on your home.

Interesting facts about who are self-employed:

The number of over 65s who are self-employed has more than doubled in the past seven years to reach nearly half a million

The number of women in self-employment is increasing at a faster rate than the number of men (although men still dominate self-employment).

Loans available to the self-employed:

Standard mortgage

Secured second charge loan

Unsecured loan

As lending to the self-employed is a specialist market it is recommended to contact a broker to get advice as to which loan suits your needs. Brokers have access to various lenders who offer very competitive rates in all areas of lending. Please call to discuss your needs.

https://www.second-charge-loans.co.uk/contact/

 

self-employment

 

 

 

What is a second charge mortgage?

/in /by

A second charge mortgage is a loan borrowed against your home, on top of your existing mortgage. As the second charge is secured against your property, you need to have sufficient equity in your home to support the loan.

If you were ever to default on your repayments and have your home repossessed and sold, the ‘first charge’ mortgage lender would get their money back first, and the ‘second charge’ lender would be paid back after the mortgage and potentially other secured loans have been repaid.

As the second lender is taking a higher risk, second charge loans are usually charged at slightly higher interest rates than mortgages. But they are a great deal cheaper than unsecured personal loans that is for sure. So, it is obvious why you might choose a second charge over a personal unsecured loan. But why would you consider a second charge loan, rather than simply re-mortgaging and borrowing more on your first charge loan?

Second charge loan v re-mortgage 2 examples

1.You are paying a very low mortgage rate.

Thousands of mortgage borrowers in the UK are on very low lifetime tracker mortgages taken out pre-2008, paying less than 2%. If you are on one of these deals and you want to borrow, say £50,000 extra, your mortgage lender may offer you the extra cash but insist that you re-mortgage the whole deal onto a higher interest rate.

In this instance, it makes sense to keep your existing borrowing at the lower rate guaranteed for the life of your mortgage, and just borrow the extra £50,000 as a second charge at a higher rate.

  1. You need a quick turnaround.

It can take several weeks to organise a re-mortgage. If you require extra finance in a hurry, going for a second charge will be the quicker and cheaper option available to you.

Can we help?

Need to know more? Please do contact us and one of our advisers will be happy to assist.

https://www.second-charge-loans.co.uk/contact/

second charge mortgage

 

Rising second charges

/in /by

A significant rising number of people taking out a second charge loan to improve their existing homes could hit the new-build property market during 2017.

Some of the UK’s major house builders had been predicting a slowdown in completions during 2017, and that had been further evidenced by an increase in second charge loan applications as more people sit tight and improve their existing property.

Lenders are very aware of this situation and are monitoring it very closely as they want to keep pace with this growing trend.

Anyone who is looking to make some savings this year or to cut back on their outgoings will be looking very closely at any expensive loans they have. This year has seen households around the country taking out second charge loans to reduce overall expensive debt.

Making a saving of £100 or £150 per month on a loan is really not that unusual these days – and who wouldn’t like £1,200 or £1,800 a year in their bank account?

Uncertainty is fuelling this behaviour. I don’t think people are really that bothered by Brexit or the Trump effect – the truth is many people are feeling the pinch and have less money than they did have.

With interest rates at a record low level they can only go in one direction and that is up. There is already some talk of that during 2017 so the chance to negotiate a fixed rate and save money is looking increasingly attractive for borrowers.

Can we help?

If you require some help with your borrowing please do make contact and one of our advisers will be happy to assist.

https://www.second-charge-loans.co.uk/contact/

rising

 

 

 

Second charge loans continue to grow rapidly

/in /by

The second charge loan industry has seen massive growth over the past few years and it continues to grow.

The facts are the second charge lending market grew by 34% in 2016, with the total size of the sector reaching record levels of lending. 2017 is following the same trend with loan applications and completions up again on last year’s impressive figures.

The industry’s huge growth shows borrowers have become more aware of the ways second charge lending can help solve debt problems quickly and efficiently.

As the second charge sector continues to build on its successes, we are seeing lenders producing more new products to assist the borrower.

Recent surveys show homeowners when raising funds see speed of completion as a major factor. The industry has noted this and worked very hard to reduce lending times and now the average completion can happen within four weeks. This is a big step forward and goes to prove the lenders take this form of lending very seriously.

With the Brexit talks looming it appears the majority of homeowners want to consolidate any expensive debt they may have as experts are predicting very unsettled times ahead.

Can we help you?

If you require more information of how a second charge loan can help you, please contact us and we will be happy to assist.

https://www.second-charge-loans.co.uk/contact/

grow

Secured loans to help with debt

/in /by

Consolidate debt

Do you turn to credit to help make ends meet? It’s an increasingly popular solution, but it may not be the best one, because those credit agreements can quickly add up – and monthly repayments could start getting out of control as a result. So why not consolidate? Turning debt into a single, more affordable monthly payment could make a huge difference to your finances, and with loan rates so low, it could be a great time to give this idea serious consideration.

Second charge low pricing = low repayments

According to our latest research, the ongoing cuts to secured loan pricing mean that customers who switch or take out a new loan today can save hundreds of pounds over the term of their agreement.

This is largely thanks to intense competition between providers. Quite simply, lenders want you to come to them for your borrowing needs as they’ll earn interest from you, and they’re willing to lower their rates in order to secure that kind of business. So why not take advantage? Your monthly repayments could be far lower by consolidating your credit cards, for example, and you may even want to consider taking out a new low-rate loan to replace a current one which may be far too expensive.

With all the uncertainty that the Brexit talks will bring now could be a very good time to review your outgoings.

Can we help?

If you would like to review your current loans and require more information how a second charge loan could help you please get in touch.

https://www.second-charge-loans.co.uk/contact/

 

debt

Benefits of secured lending

/in /by

Second charge loan advantages and benefits:

There are many very good reasons to consider a second charge loan over a re-mortgage and these are just a few.

  • Speed of completion
  • Flexible repayments
  • No early repayment fees
  • Much lower set up charges

A secured loan can be used in many situations to assist a client get their finances back on track. When a client has a poor credit rating or even CCJ(s) they often do not want to go down the route of a debt management plan (DMP).

Also, the client may have a very good mortgage deal currently running with penalties to change. A re-mortgage isn’t always the answer as there are other alternatives that can assist most situations.

What we are seeing is secured loans being used to settle unsecured debt that has built up over the years gone by. This could be a simple loan or a number of high interest credit cards which eat into the monthly family budget. A secured loan can be raised on the existing property which will have one lesser payment each month helping the client get back control of their finances.

Second charged lending is growing in stature every year and figures show clients are very receptive to this form of lending.

Like to know more? 

If you are looking to raise a loan please do make contact and one of our advisers will be happy to guide you.

https://www.second-charge-loans.co.uk/contact/

 

benefits

 

Quickly Growing Market Second Charge Loans

/in /by

Why is second charge lending growing so quickly?

In these hard times of financing it has become more important to be able to complete a deal on time. Second charge lending has grown in status year on year and seems to be going from strength to strength.

Second charge loans deliver funding quickly and efficiently which is something high street and private banks just cannot do when re-mortgaging. A recent survey of borrowers clearly shows one of the most important ingredients in funding a deal is speed of completion and the costs involved. The survey showed that traditional re-mortgaging is taking far too long to get funds released and deals falter due to this reason.

One client interviewed said “I have just taken out a second charge loan on my property and found the process efficient and very fast”. “I would have no hesitation to recommend this type of funding, just make sure you explore all the options open to you by getting professional advice”.

Nowadays there is a vast choice of loans available and it is vital to get the correct one to suit your budget and expectations. With talk of rate raises later this year do check out the fixed deals on offer as this could in the longer term save you money.

Need help?

If you have a financial situation and need clarity of what can be done call us now and we will be very happy to talk things over. https://www.second-charge-loans.co.uk/contact/