Also known a secured lending
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 borrowers 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 three 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.
As a borrower finding the correct loan for your needs can be a very daunting task, there are so many options available to the majority. If you are contemplating refinancing please do make contact with one of our fully trained advisers, they will be happy to assist you in making the right choice.