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.
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.