The latest data released has revealed that the average value of a residential property across the UK is still at a very positive level. This information puts the homeowner in a very strong position if they are contemplating raising finance and using the home as security.
Homeowners have choices if they wish to raise capital, they could re-mortgage or take out a second charge loan secured on the equity within the property.
What is equity?
This is very simple to work out, just take the current value of your home and deduct the outstanding mortgage you may have and what is left is known as equity.
Property Value £250,000 Outstanding mortgage £150,000 Equity = £100,000
Second charge lending has made huge strides in the last 5 years and now should be considered before any decision is made about re-financing your property. Second charge lending offers a fast and effective way to raise capital at a very affordable cost. Interest rates and set up costs offered by lenders have reduced significantly over the last couple of years and now are in line with the mortgage market.
The range of second charge loans are increasing every day with more flexible repayment methods being offered which has found favour with the borrower. Repayment periods are flexible and are generally set to suit the client’s wishes.
Like to know more?
If you are considering taking out a loan please do make contact and one of our fully qualified advisers will be happy to help.