Second charge loans have risen in popularity over the last few years. Before the credit crunch second charge lending had a rather different image to the one portrayed today.
This outlook has changed significantly over the last few years with banks and payday lenders charging very high interest rates. The second charge sector has innovated and now is seen as a perfectly acceptable form of funding for the borrower in the short and longer term.
Whilst the industry has never been shy in blowing its own trumpet the latest figures from the trade body demonstrate that there is a great deal of substance behind the PR machine.
Brokers up and down the UK reported large increases in business in 2017 with loans being written well in excess of 2016.
This rapid growth has seen an injection of new lenders enter the market, together with a wider range of new specialized products to basically fit the majority of needs.
The clear majority of second charge loans are now used by homeowner families but now landlords are seeing this as a flexible option to main stream lending. This type of funding can be put in place without fuss and very quickly to meet the client’s needs. For the borrower second charges offer flexibility and used correctly can assist in generating the funds needed rapidly.
The future for second charge lending seems to be very bright for all those involved. There was always a gap in the market for loans that could be completed quickly and efficiently.
Find out more
As second charge lending has progressed more and more flexible products have been launched, if you would like to know more about this type of loan please call one of our fully qualified advisers.