Have you woken up with a bit of a financial hangover after all that festive spending? Perhaps you’ve got big plans for the year ahead and want a cash injection to fund things, or maybe you need a new car or home appliance to get the New Year off to a great start? Well, whatever your reasons for needing a loan, you can now snap one up for the cheapest ever rate.

There is a great choice of loans available these days but do be very careful as a lot of the unsecured deals carry heavy interest rates. Secured lending (second charge) can be very cost effective indeed with record low interest rates currently on offer. They are relatively easy to apply for and funds can be released much quicker than a traditional re-mortgage.

Lowest loan rate on record:

This is the lowest that secured loan rates have fallen, which will delight borrowers looking to consolidate their debts. It has come at a particularly difficult time of year for those who may be stressed over their finances and spending too much over Christmas – paying off an expensive overdraft or credit card should become a priority moving into the new year, so these low rates are likely to attract many consumers.

It’s worth pointing out that these record-low rate second charge loans are unlikely to be around much longer as experts are predicting general rate rises all round. So if you are looking to raise funds it could be a good idea to act sooner rather than later.

Can we help?

If you are looking to raise funds and require help please do contact one of our advisers and they will be pleased to guide you. https://www.second-charge-loans.co.uk/contact/

It has always been more difficult for self-employed people to get a mortgage compared to salaried employees. For that matter, 2nd charge loans have historically been somewhat harder to obtain for the self-employed as well.

At the heart of the issue is a tendency among self-employed individuals to not be able to satisfy loan companies 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.

Lenders are changing the way they do business in order to better serve self-employed applicants. For example, one specialist lender indicated that it had reduced its tax calculation requirements while others are changing their income criteria to make it easier for borrowers to document their income.

Second charge lenders can do a lot more to help than primary mortgage lenders because they have much more flexibility. They are finally taking advantage of that flexibility to find ways to better serve self-employed borrowers. Even more encouraging is the fact that lenders are coming up with a lot more specialised products.

Need help?

If you would like to know more please do make contact and one of our advisers will be happy to assist. https://www.second-charge-loans.co.uk/contact/

A second charge loan, often simply referred to as second mortgages, are a secured loan used to raise extra money instead of re-mortgaging or taking out a personal loan.

A new survey from specialist lenders has found that 76% of consumers do not know what a second charge mortgage is, resulting in homeowners missing out on a potential source of finance.

Of the minority who were aware what a second charge mortgage was, 28% did not understand the difference between this and a re-mortgage.

Despite the changes in the regulation and promotion of second charge mortgages following the Mortgage Credit Directive (MCD), it appears that many homeowners still are not aware of the second charge offering.

For some, a second charge mortgage is a far better option than a re-mortgage, so it’s surprising that so many consumers are unaware of what they are and how they work. If you are looking to raise capital from the equity within your home it is essential to seek professional advice as to the best way to proceed.

Second charge lending is growing in popularity and it is expected to boom in 2017 as the Brexit negotiations commence. Homeowners have made it very clear in recent surveys they want to reduce or consolidate any expensive lending they have.

Can we help?

If you are looking to take out a new loan please do make contact and one of our advisers will be happy to explain all the options open to you. https://www.second-charge-loans.co.uk/contact/

On the up again:

The value of second charge lending has jumped by 23% in the last two months which is the biggest increase for many years.

Figures show, second charges in September was at a post-Brexit low and the October figure is the highest since November 2008. It also represents an overall annual increase of 21%.

The number of second charge loans was also up significantly, rising 26% from 21,500 in September to 27,547 in October and is the highest since January 2009. The average loan amount rose by a staggering 11.4% as homeowners look to utilise the equity within their homes. Second charge lending accounted for 17.8% of total gross lending in October, the highest percentage since April 2012.

The second charge market has enjoyed a revival since September’s post-Brexit low.

Homeowners are borrowing at levels that have not been seen for almost eight years, when the recession hit.

There are several key driving forces behind this revival. Some of this is seasonal. In the run-up to Christmas, families are looking to tighten the purse strings, reduce their monthly bills and prepare for the festivities. Families are seeking long-term security while we wait for the outcome of Brexit negotiations, some homeowners are locking in low rates and fixing their monthly repayments which could be a shrewd move.

Need some help?

If you are looking to take out a secured loan, please do make contact and one of our advisers will be happy to assist. https://www.second-charge-loans.co.uk/

The last three years has seen second charge lending increasing in stature as homeowners become aware of the huge cost of the “pay day loan”. For many years this form of 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 form of lending has.

Interest rates have been reduced and are now in line with the average mortgage. Another huge plus is the low cost of setting up a second charge loan along with the speed of completion.

Who can benefit’s from second charge lending:

• Their client is in a tie-in period and does not want to pay a large penalty
• Their client needs funds very quickly
• Their client is or has been in arrears with their current lender and wants to avoid disturbing their current low rate for sub-prime rate
• They can’t get the income multiples they need for their client
• The client has an interest only mortgage and does not wish to remortgage to capital & repayment
• Their client is benefiting from a low SVR and does not wish to disturb their current product

Most common reasons for a second charge loan:

• They wish to consolidate their outstanding loans and credit cards
• They wish to carry out home improvements
• They are looking to inject cash into their business
• They have had adverse credit and wish to speak to a company who understand their situation
• They are self-employed and wish to raise finance for one of the above

Can we help?

If you would like more information on how this type of loan could help you pleased do make contact with one of our advisers. https://www.second-charge-loans.co.uk/