More and more borrowers are turning to second charge loans as mortgage companies tighten controls on borrowing. Figures just released for the last quarter show “seconds” increasing to homeowners by 19% on the previous quarter, these increases are likely to be down to tighter controls from high street banks and other traditional lenders.
Brokers up and down the country confirm they are using second charges to assist clients in achieving their targets as high street lending becomes more and more difficult. One broker in Sussex said, “secured finance is filling a funding gap which has appeared”. “Borrowers are finding it more difficult to obtain loans from mainstream lenders who are implementing tougher affordability restrictions”.
Some 70% of brokers reported a significant increase in secured loans in the last quarter and the trend seems to be continuing. Of the brokers survey 100% of them stated they found second charge finance very easy to use and quick to complete. The Sussex broker commented “We have used “seconds” in the past and now we are using them on a more regular basis”. “Clients in general are impressed with the efficiency and speed of completion a second charge loan offers”.
There is little doubt this form of loan should be taken seriously especially when you compare the interest rates being charged by unsecured lenders.
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If you would like to know more about second charge financing and how it could assist you please do get in contact and we will be happy to help.