Secured lending and the value of professional broker advice
Almost nine in 10 second charge loan applications through an intermediary (broker) resulted in an offer in 2018/19 – up from seven in 10 in 2017. What is more four in five of those offers went to completion, up from seven in 10 the year before.
In particular second charge borrowers have benefited from widely available and competitively priced deals. This is a tribute to the lenders who have expanded their portfolios of loans available to the majority of homeowners.
Lenders remain firmly focused on rigorous affordability tests so that borrowers do not overstretch themselves to achieve their ambitions. Brokers are very positive about future prospects, as two thirds said they were very confident in their own business’ activity for 2020 and beyond.
The rise of lenders willing to help second charge borrowers and greater innovation in the market means more and more borrowers are securing cost effective loans to meet their needs.
If you are looking to take out a loan in the near future, you should keep in mind that interest rates are likely to increase at some stage, especially with the Brexit and current pandemic situation.
Careful consideration should be given to fixing your rate and an independent broker will explain all the pros and cons helping you make the correct choice.
Help required?
If you would like to discuss your lending requirements, please do make contact and one of our independent advisers will be happy to assist.