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.