Second Charge Lending

Competitive Rates on Second Charge Lending

Second charge lending rates reduce:

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 England recently reducing interest rates again it is expected the already low rates for second charge lending will fall again.

Second charge lending is growing in stature all the time and is now a very serious alterative to the once traditional re-mortgage. In the past a second charge loan was seen as a very expensive alternative to more traditional methods of raising capital.

Another major advantage of second charge lending is the speed of completion. A standard re-mortgage can take months to complete were as a second charge loan can be completed in a matter of days.

This form of loan will not suit everybody but it is without doubt worth exploring with the help 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.

 

Second Charge Loans increased approval rate

Secured lending approvals see increase in Second Charge Loans

2016 has seen the Second Charge Loans market reach new heights as homeowners look to reduce the high cost of unsecured lending. Applications in the first half of the year are over 70% higher than the same period last year. The Bank of England has reduced rates to an all time low and new legislation and regulation within the 2nd Charge market place has generated a surge in interest from borrowers across the UK.

With so many different loan types on offer the market has become very confusing for the borrower. Second charge lending has made huge strides forward and now offers a very affordable alternative to the traditional re-mortgage.

One other reason for this sectors continuing success is down to the interest rates being charged by the so called “pay day lenders”, people are without doubt becoming very wise to the true cost of this form of lending.

Records show approval for Second Charge Loans are this year to date 61% higher than the turn of the year last year. This is no surprise to us as this form of lending really is a very good alternative to others on the market.

If any homeowner is looking to raise capital we would always recommend they seek professional advice as to which loan solution fits their needs. Unsecured loans from high street banks and other sources can be notoriously expensive we have all seen the rates charged by the “pay day” lenders. It is crucial to get the right deal as the wrong loan could be very costly in the long run.

Need some help?y

If you are considering taking out a second charge loan please do call one of our qualified advisers and they will be happy to guide you in the right direction.

 

Second Charge Loans

Lowest Loan Rates For 2nd Charge Loans

Positive vibes:

The second charge mortgage market is expected to benefit if banks decide to introduce negative interest rates by introducing the lowest loan rates ever for 2nd charge loans. Various major banks have warned that customers could face negative interest rates if the Bank of England base rate falls below 0%.

Negative interest rates may have a positive impact on the second charge market, which would in turn have a positive impact on the consumer through lower rates. Any reduction in borrowing costs can only be good for the economy as a whole by putting extra money in consumer’s pockets and helping to boost the property market. The second charge market being reliant on economic prosperity and a strong property market should continue to improve lending products and interest rates if base rates are reduced further.

Good times:
We are already in a low interest rate environment and clearly that makes it a good time to borrow given the rates that are already available in the second charge mortgage market.
If rates do continue to fall, it does not necessarily translate to lower rates for first charge mortgage borrowers as this is not always passed on to the customer. Clearly if homeowners currently have expensive debt now is the time to address the problem with so many advantageous deals on offer.
Need advice:
If you are looking to reduce expensive debt please do contact one of our fully qualified advisers and they will be happy to guide you.

Unsecured v Secured

Unsecured versus Secured

There are several advantages to secured loans. First, you can borrow a larger amount with a secured loan than with a personal loan that is unsecured. For example, many banks and building societies will lend up to £100,000 on a secured loan. With a personal unsecured loan, the maximum advance you are likely to get is £15,000.

You can also take longer to pay back the debt – a term of 15 or 20 years is not unusual with a secured loan, as opposed to five or perhaps 10 with the unsecured option.  A longer term usually means lower monthly repayments, but remember that you will pay more in total interest if it takes a long time to clear the debt.

The interest rates on secured loans are normally a lot lower than the rates on unsecured borrowing, but they do vary from lender to lender. It is always best to seek professional advice as to what type of loan and rates will meet your needs.

Lenders will take into account your credit score when they set the rate for a secured loan. However, they tend to be more sympathetic to borrowers with poor credit scores because the loan is secured against your property.

Secured loans are often used to finance home improvements or to consolidate other debts and can be a credit lifeline.

Need some advice?

If you are looking to raise capital from the equity within your property please make contact and one of our fully qualified advisors will be happy to assist.

Post Brexit Increase

 

Enquiries increasing post Brexit

A recent report has revealed the 2nd charge market has received an “unprecedented” number of enquiries following Britain’s vote to leave the EU.

In a post-referendum outcome it is reported that the uncertainty in the market caused a record number of customers to make new lending enquiries.

It is without doubt the vote that has caused the upturn in enquiries as householders look to stabilize their finances. It seems the public are very keen to reduce the amount of high interest debt within the household, credit cards in particular.

Good news for the borrowers is that lenders are keen to assist and interest rates are remaining stable. Many lenders are increasing their product range to meet the new demand so securing a second charge loan should be straight forward.

A big advantage of second charge lending is the speed of completion which is always an important factor. On average a straight forward case will complete within 25 working days, and in some cases even quicker.

These days the lending market can be a very confusing area. If you are thinking of raising new capital do get the correct advice as there are many options available to most homeowners.

Can we assist?

If you require help with your new loan please do contact one of our fully qualified advisers, they will be happy to guide you in the right direction.

 

 

 

 

A Surge In Lending

Secured Lending Surges On

 

Secured second charge lending was 39% higher in May and June this year compared to the same period last year. We reported this financial year has started with record levels of applications and this shows no signs of slowing.

 

Second charge lending has always been in the market place but over the last 2 years this form of funding has grown significantly. Landlords are increasingly turning to second charge lending as it is far more cost effective in the long term and advancement of funds is significantly quicker than a traditional re-mortgage.

 

There is little doubt lenders have seen the potential growth in this area and they have responded well, offering a good range of flexible loan deals especially to landlords.

 

In the years gone by if a homeowner wished to raise capital from the equity within their home brokers invariably recommended a re-mortgage. This situation is changing as all parties become more aware of the advantages of a second charge loan. If you are looking to release funds tied up within your property it is strongly recommended to explore this type of loan as you could save a great deal of money.

 

Help required?

 

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

 

 

 

 

 

 

 

 

 

Popular Choice

Second Charge Mortgages Gaining Popularity:

 

Up to four in ten re-mortgages or home owners seeking further advances in the UK could benefit from taking a second charge loan, it is claimed.

Secured lending specialists believe that a combination of record low rates in the second charge market and the sector’s strong growth since 2014 highlights the benefits for customers and the opportunities for brokers.

Customers who would potentially benefit include interest only borrowers, people facing early repayment charges, and people benefiting from lifetime trackers or low fixed rate mortgages.

Landlords could also be in line to benefit from increased competition in the buy to let second charge market leading to significant pricing reductions. All this makes second charge lending an attractive alternative to re-mortgaging. This will allow landlords to benefit from the increased equity within their current portfolios.

The second charge market is on course to lend in excess of 1bn this year. Lending has achieved year on year growth since 2012 against a background of a buoyant re-mortgage market.

Rates have dropped to all-time lows making the case for borrowers to take out a second charge loan without disturbing their existing mortgage arrangements.

Need help?

If you are considering taking out a new loan against your property please get in touch with one of our fully qualified advisers who will be happy to guide you.

 

Positive Moves

So the Mortgage Credit Directive (MCD) has been implemented and the world is still spinning. Many extra hours were put in by lenders, brokers and intermediaries to implement IT changes and make policy amendments so that systems and processes could continue to run smoothly after the 21 March this year.
In almost every company this hard work has paid off. I always admire how well both lenders and intermediaries get to grips with change – no matter what is thrown at them.
In the case of the MCD, I think the changes, ultimately, have been a good thing and made for a smoother customer journey. We are already seeing a positive move within the sector as far as product innovation goes.
Increased awareness:

A key hope for the directive was that it would increase awareness among intermediaries of second charge mortgages, making them more mainstream. There is already evidence that increasing numbers of brokers and intermediaries are becoming aware of the value of second charges and the fact that they can be a much more cost-effective option than a
Re-mortgage or further advance.

Choosing a loan:

This is no easy task as there are so many different options open to the majority of applicants. Be sure you know how much you feel comfortable in repaying each month and seek professional advice as to the best loan to suit your needs. We have fully qualified advisers waiting who can assist you so please do get in contact.

Speed Is Important

Second charge lending continues to grow in stature month on month as homeowners look for loans at affordable rates. Homeowners are becoming very aware of the costs associated with unsecured lending and the so called “pay day lenders”.
A recent survey taken from 1000 homeowners clearly shows speed of completion is a very key factor when taking out a new loan. Obviously the costs and interest rates were very high on the list of wants but speed was very important also.
One of the big appeals of a second charge loan is it meets all the surveys key facts such as costs and speed. On average a second charge loan is completed within 21 working days, this does of course vary dependant on the complexity. This financial year has also seen a significant reduction in set up costs plus interest rates are at the lowest ever recorded.
Lenders have seen their market share grow at a rapid rate. They have been quick to recognise the importance of speed in completing a deal as competition increases. One major lender commented “The last 12 months has seen huge changes within the second charge market with faster completions being a key factor to winning business”.
There is no doubt second charge lending has had its most successful year, the good thing is lenders have taken this on board and reacted positively to meet the challenges.
Need some assistance
If you think this type of loan could assist you with your future planning make sure you get the right one to suit your needs. There are many different lenders offering numerous second charge loans so please do call our advisers who will be happy to help.

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.