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is believed the new rules applicable to second charge lending have helped improve the customer perception by removing out of date borrower protections.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.