Offering More

More to offer second charges:

A recent survey has revealed 84% of brokers around the country plan to include second charge lending in their advice process this financial year. This change of tact has been brought on by Mortgage Credit Directive’s (MCD) rule changes recently introduced.

The new MCD will require brokers to mention the option of second charge loans to clients looking to extend their borrowing. Brokers wanting to describe themselves as “Independent” must now include second charge lending within their scope of services.

Secured second charge lending is increasing month on month as brokers and clients alike see the benefits this form of lending offers. Unsecured loans are common but often very expensive especially the so called “pay day lenders” and clients are looking for viable options.

Lenders have been very quick and positive to react to the increase of second charge lending. They have and are producing many attractive products to suit both short and long term funding. Interest rates historically used to be high on a second charge loan but lenders have addressed this issue well by offering some very attractive deals.

One of the many advantages of a second charge loan is it does not affect the first charge mortgage sitting on the property as a client may have penalties to change. In this case it makes a second charge a very cost effective option and can save thousands on exit fees on the first charge loan.

Need some help?

If you think this form of loan could assist you in your planning please do get in contact and one of our qualified advisers will be happy to guide you in the correct direction.


Quicker Completions


Second Charge loans completing quicker:


The time it takes to complete on a second charge loan has reduced significantly following the removal of the 16 day cooling off period. Within the industry it is believed the new rules applicable to second charge lending have helped improve the customer perception by removing out of date borrower protections.

 These changes put second charge lending in a position to rival both bridging loans and re-mortgages when speed of completion is the driving factor.

It is early days but it’s plain to see the new Mortgage Credit Directive (MCD) legislation has significant advantages for borrowers and lenders alike.

The industry is seeing a new application in a straight forward case complete in a matter of days rather than weeks. In the past should the borrower wish to amend their initial loan amount a new cooling off period was required, thus increasing the completion time by a further 16 days.

When taking out a second charge loan the majority of cases do not require a solicitor and not only does this speed up the process but keeps the initial costs to a minimum.

Second charge loans are growing in stature every day, borrowers see this type of loan as a cost effective alternative to other forms of lending.


Should you require any advice or assistance in raising a new secured loan please do contact one of our fully qualified advisers.


Boom !

Second charge lending booming:

The value of second charge lending issued in February of this year rose by 40% year on year to £81m, according to figures just released from the Finance and Leasing Association (FLA).

The FLA report states £887m of second charge loans were written in the year to February which is up 36% more than the year to February 2015. FLA head of research stated “the latest figures reflect robust consumer confidence with particular regard to their own personal finances”.

This is strong evidence to support the recent reports stating second charge lending is increasing at a rapid pace. Second charge lending is growing in popularity for several reasons, speed of completion and lower interest rates are the two main ones. This form of lending is now a real alternative to the customary re-mortgage and offers borrowers real alternatives.

The range of second charge loans are increasing on a daily basis, offering more flexible repayment methods and lower interest rates. This form of lending is now falling into line with the tradition mortgage but does offer a far quicker completion time which is very popular with borrowers.

Way forward:

Second charge loans do not suit every need and it’s vitally important any potential borrower seeks professional advice from a qualified adviser. If you would like to discuss a potential loan please do contact one of our fully qualified advisers.


Second Charge Approvals

Second Charge Approvals:

Brokers and lenders alike have welcomed the Bank of England’s latest figures showing second charge lending hitting an all-time high in March.

These figures are partly down to the rush of buy-to-let landlords increasing their portfolios before the stamp duty changes took effect. New and existing buy-to-let investors raised the required deposit levels by taking out second charges on existing property holdings.

April has started well with brokers reporting a steady rise in both applications and completions compared to the same period last year.

There is little doubt second charge lending is increasing its popularity month on month. When you compare the interest rates on offer to unsecured lending it is very evident why this form of fund raising is growing in stature.

There are many advantages that a second charge loan offers, not least the quick turnaround time which can be as little as 28 days. This of course is a great deal faster than a standard re-mortgage which can drag on for months.

As second charge lending grows in popularity we are seeing new and innovative products hitting the market on a regular basis. Interest rates have reduced considerably over the last 2 years and they now offer a very attractive overall package.

Lenders are reporting the largest growth area of this type of funding is via the self-employed workforce. Good news is the lenders have reacted positively to this and look very favourably towards this area of lending.

If you are considering raising funds on your property please do contact one of our fully qualified advisers who will guide you in the right direction.





Rates Reduce

Second charge rates reduce

For the time being mortgage interest rates are likely to remain at their all-time lows. If you are considering a new or re-mortgage now could be the time to make your move as things could be changing in the near future.

Second charge loan interest rates are falling all the time as well, this type of loan could be used as an alternative to a re-mortgage if it fits your lending criteria. Second charge lending is growing in stature and is now a very serious alterative to the once traditional re-mortgage.

Lenders have seen the potential growth in this area of raising funds and have responded well by offering competitive short and long term packages to suit the majority of needs. Over the last 12 months interest rates have tumbled and are now very much in-line with a standard mortgage.

In the past a second charge loan was seen as a very expensive alternative to more traditional methods of raising capital. Now-a-days this is just not the case as lenders have expanded their lending to meet the increased demand.

This form of loan will not suit everybody but it is without doubt worth exploring with the advice of a qualified adviser. These days the choices of loans open to the majority of homeowners is vast and it is vital to get the correct one to suit your needs. Making the wrong choice could prove to be very expensive over the longer term so do seek the appropriate professional advice.

Need some assistance?

If you think this form of loan could assist you in your future planning it is very important to ensure you get the correct advice. There are many lenders offering numerous second charge loans, please call one of our advisers who will be able to guide you in the correct direction.

Realise the Potential

Second charge potential


Although secured loans have had an increased profile in recent years, there are still some brokers who are not fully aware of their potential. However, recent figures just released show these numbers are dwindling all the time.


Second charge loans can be a very useful facility for managing overspending and could help resolve debt problems that may have built up over the years.


For those borrowers on a favourable mortgage deal with the first charge lender, they can keep that deal and use a second charge loan to pay off or consolidate their other debts.


Second charge loans in the majority of cases will complete much quicker than a re-mortgage which can prove vital in certain circumstances.


There are some very clear benefits a secured loan can offer when used correctly which could well improve the customer’s long term financial prospects. Although consolidating debt is not always the right answer, a secured loan is often a suitable option given the lower interest rate charged when compared to an unsecured loan.


There is little doubt that this form of lending will continue to grow as it has done over the last few years. The majority of borrowers are waking up to the fact that unsecured lending is far too expensive both in the short and longer term.


If you are looking to improve your finances a secured loan could very well suit your needs, it is very important to seek professional advice as there are so many options to choose from.







Trapped !

Mortgage prisoner:

Interest-only and older mortgage borrowers have found themselves prisoners of their own mortgage lender. Borrowers in this category are turning to a second charge loan as a solid alternative to re-mortgage as a way of raising cash.

Figures show that there are currently 2.8 million people with an interest only mortgage and the majority of those are over 50 years old.

Unfortunately, many of the interest only borrowers, who only pay the interest each month on their mortgage and no capital reduction, find themselves with a problem. Many banks and building societies are now insisting that any re-mortgage be converted to a repayment mortgage, meaning payment of interest and capital. This presents a problem to the more mature borrower as payments each month would increase significantly.

Some other lenders in the market are now refusing to extend mortgages on an interest only basis without seeing absolute proof of a repayment plan at the end of the term. If this is the case then a second charge loan could be the perfect answer to raising funds on your home.

A second charge loan – or second mortgage as they are known – works in the same way as a mortgage and is secured against your property. As the name suggests it comes second in line behind your existing mortgage deal.

If you need to raise funds without re-mortgaging now is a good time to review your situation as interest rates for second charge lending are at an all-time low. There is a very good selection of plans available from standard rate through to various term fixed deals.

If you would like to know more please call one of our fully qualified advisers who will be happy to assist.



A New Era Dawns

New era of lending:

The second charge loan market has recently been hitting the headlines revealing a 5 year high lending figure which topped 1bn last year.

In years gone by the processes for first and second charge mortgages have been very different and this proved confusing to most people. Borrowers clearly did not fully understand how a second charge loan worked or how to go about finding out.

One of the factors behind this escalating growth of this sector is driven by the looming implementation date of the Mortgage Credit Directive (MCD). In light of the recent lending figures it is clear regulation of the market has resulted in intermediaries considering second charge mortgages more closely. MCD will help align second charges to the mainstream mortgage market and open up more choices for the borrower. As a result the division between first and second charge lending will begin to be non-existent and this can only benefit all involved.

Resurgence of second charges:

Although the directive has been a contributing factor, it is felt within the industry that the commitment from the lenders to engage with the intermediaries will be instrumental in the long term success. As a result of this new found understanding more and more intermediaries have a deeper understanding of second charge lending and the potential benefits it offers clients. It is therefore little surprise that second charge lending has topped the £1bn mark last year and figures show it is likely to be much higher in 2016.

Looking forward:

Second charge loans do not suit every need and it is vitally important any potential client seeks the correct advice from a professional qualified adviser. If you wish to know more please do not hesitate to contact us.