Entries by 2nd Charge Loans

Self-employed – Raising capital

It has always been more difficult for self-employed people to get a mortgage compared to salaried employees. For that matter, second 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 officers […]

Is expensive debt holding you back?

The early part of 2019 saw a sharp rise in the number of mortgage advisers utilising second charge loans for clients concerned about their expensive long-term debt. According to figures from the Bank of England, personal debt in the UK grew 12.4% in the year to 30 November 2018 the highest level since December 2008. […]

Second charge lending rates reducing

 Lenders have seen the potential growth in the second charge lending market and have responded well by offering very competitive short and long-term packages to suit the majority of needs. Over the last 12 months second charge interest rates have tumbled and are now very much in-line with a standard mortgage. With the Bank of […]

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 […]