A recent survey has reported that fallout from Brexit has had little effect on the second charge lending market as 65% of loan applications resulted in an offer in Q3 2016 – up from 31% in Q2 2016.
The proportion of offers that subsequently resulted in a completion also increased to 78% in Q3, from 64% in Q2. Lenders also experienced a significant 26% jump in the number of second charge enquiries they received in Q3.
Research also found that the Brexit result did not significantly affect the flow of customers through the overall second charge approvals process. Between Q2 and Q3, there was a dip of just 1% in the number of applications resulting in offers and subsequent completions. Furthermore, the rate of completions per 100 applications remained unchanged between the two quarters, while the rate of completion per 100 agreement-in-principles and per 100 enquiries increased marginally.
This form of lending is now hitting all the predicted levels from two years ago, as homeowners take advantage of the low loan rates on offer. The survey also stated importantly that borrowers much prefer this form of lending to the unsecured alternative.
With Christmas just around the corner it is expected to be a very busy New Year as homeowners look to consolidate new and existing debt.
Can we help?
If you would like to know more about second charge lending and how it could assist you do make contact and one of our adviser will be happy to guide you.