Lenders look to re-price their products downwards

Getting more and more attractive

There has been a flurry of activity in the second charge loan sector recently as lenders look to re-price their products downwards. We are pleased to inform you second charge loans are at their lowest rates the sector has ever seen. Great news for borrowers indeed, this is without doubt one of the contributing factors to second charge’s rapid growth over the last three years. This type of loan has been getting less expensive as competition for business intensifies, plus new funding sources are coming into the market rapidly.

Lenders are now looking for ways to attract more business and we are now seeing a lot of new offers creeping into this expanding form of lending.

Speed is important

We are always asked with virtually every case we do “how quickly can this be done”. The answer is every case will vary due to the complexity of the deal. The average time currently to complete on a “straight forward loan” is 28 working days.

To help complete the case quickly clients should follow these golden rules.

1, Good fast communication.

2, Skype contact details.

3, Return applications rapidly.

4, Easy access to the property for the survey.

5, Internet access.

 Need some advice

If you require assistance with your next loan please do call one of our expert advisers who will be happy to help.




Second charges have lift off

The second charge mortgage market has undergone huge changes over the last 12 months following the regulation of the sector by the FCA. This has made second charge mortgages move centre stage, and acquire a greater veneer of respectability, but it comes with additional responsibilities.

Some of the original rules attached to them under regulation by the Consumer Credit Act have still carried over, but the FCA has added to the rules governing their sale.

The positive knock-on effect has been seen in the sales of second charge mortgages and industry observers expect the market to take off even more now.

As you can imagine, since the introduction of the Mortgage Credit Directive there has been a huge number of changes in the second charge lending market.

These changes have been extremely positive. The major one from our perspective is that consumers now benefit from a much more professional approach when applying for a second charge mortgage. The process they go through is now is as rigorous as when they are applying for a mainstream mortgage or a re-mortgage. From a customer journey perspective, this is a fundamentally positive change. This attention to detail on front-end processes means that the back-end is far quicker.

The other significant change is that lenders are far more competitive than they were. This is reflected in the products now available, for example interest rates are starting at 5% or less.

Common reasons for using a second charge loan include preserving their existing first charge mortgage if they have a good deal or would incur charges to change, or if they have unusual circumstances like becoming self-employed.

Can we help?

If you would like to discuss your lending requirements one of our fully qualified advisers will be happy to assist.





Second charge loan costs reducing

The costs of second charge finance in 2017 is likely to be less expensive than last year, great news for the borrower indeed. Interest rates and fees have reduced significantly over the last six months as finance companies battle for a slice this ever-growing market. We are also seeing new incentives added to packages including assistance in funding any survey costs that may be required. These measures are normally reserved for the main mortgage market but we are seeing more offers creeping into the “seconds” sector.

2017 has got off to a flyer as more and more people see this type of financing as a very efficient way to go forward. Brokers up and down the country are reporting more clients want to complete quickly and are looking to the second charge market to meet their needs.

With the promise of quicker completions from the lenders the “seconds” market most certainly looks to have a strong year ahead.

If you are contemplating raising finances in the near future it would do no harm to find out whether this type of funding could assist you. Second charge lending has become a cost-effective alternative to re-mortgaging, completing quicker and in most cases have far cheaper set up costs.

Find out more

We pride ourselves on service, so if you need any assistance or want to discuss a potential deal do call us. Our expert advisers are experienced in all areas of lending and look forward to being of assistance.





Second charges completing even faster

This year has seen a significant decrease in the time it takes second charge loans to complete which is indeed great news for the borrower. Lenders have seen their market share grow at a rapid rate as more clients need to complete their financing quicker than the traditional methods on offer, time is money as they say!

This is very good news for borrowers as delays can cost money. Completions have seen a 20% reduction in time since the start of the year and lenders are looking at ways to reduce even more.

The market for second charge financing continues to grow month on month as more borrowers see this form of loan more convenient and cheaper in the long run. This trend looks set to continue well into 2017 and beyond.

A second charge loan in days gone by was seen as a very expensive option to raise money. This situation has changed dramatically, so if you are a homeowner looking to raise funds this could be the solution you require. It is vital to get professional assistance when choosing the correct loan to suit your needs as there are so many different options.

Seeking advice?

Our advisers are fully trained and skilled in providing you with a professional fast service to meet all your financing needs. Please do call us to discuss your requirements and we will do our very best to assist you.