Entries by 2nd Charge Loans

Average loan size increases

According to figures from the Finance and Leasing Association (FLA), the average second charge loan size has increased from around £25k ten years ago to around £45k now. The loan-to-value of around 60-65% on a second charge loan hasn’t changed much over the last ten years though, so it is higher property values which have […]

Why a second charge loan?

Funding major home improvements and dealing with changes in circumstances are among the main reasons homeowners take out second-charge mortgages. While they won’t be the right option for everyone, these loans can make sense in specific circumstances, such as the following: You have a very low interest rate on your main mortgage, and you’d need […]

Second charge loan costs reducing

The costs of second charge finance in 2019 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. The market is also seeing new incentives added to packages […]

Unsecured loan or Secured loan (second charge)

Do you know the difference? When asked a survey of 1000 homeowners from all walks of life alarmingly showed 54% had no idea what the difference was. Below may help make thigs a little clearer, but the clear message is, if you want to borrow money seek an independent advisers advice. This action could save […]

Second charge lending is completing even quicker

Second charge lending continues to grow in stature month on month as homeowners look for loans at affordable rates. A recent survey of homeowners looking to borrow found in order of priority: Survey findings Monthly cost, interest rate Speed of completion Set up charges Ease of application Early redemption fees One of the big appeals […]

Second charge lending has soared in the last year

Second charge lending has soared in the last year, with the number of people taking out these specialist mortgages increasing by nearly a quarter. The value of new business in this area of the mortgage market went up by 23% to £108 million in May 2019, according to new figures from the Finance & Leasing […]

The great British DIY season is with us

Almost half of homeowners (49%) are planning a home improvement project before Christmas, according to recent research. Each homeowner on average will spend £4,339 from their savings pot to pay for it. Almost a quarter of people making home improvements are planning to draw on their savings (22%) with the remainder borrowing to fund the work. […]

Second charge market remains very busy

The second charge market continued its strong start to the year with its highest level of activity in more than 10 years in March. According to data from the Finance and Leasing Association (FLA) 2,392 new second charge loans were taken out in March, the most since October 2008. This was up 31% on March […]

Economic uncertainty drives second charge market

Increases in the second charge loan market suggests economic uncertainty is causing more people to improve their current property rather than move. Data shows there has been an 8.9% increase in people applying for second charge finance in the second half of 2018, when compared to the same time in 2017. Figures also show that […]