More choices in the second charge market

It is without a doubt that secured lending popularity is increasing on an annual basis. Second charge mortgage market has increased this year month on month and continue to do so.

Unsecured lending (payday lenders) is so expensive when you analyse the annual interest rates on offer. Homeowners are waking up to this fact and switching to the cheaper and safer secured lending option.

The largest growth area of loans is to the self-employed and the good news is there are plenty of different plans to suit each individual case. Loans can be fixed for various terms which can give peace of mind or you may wish to just take the standard discounted variable rate.

Second charge lending is so easy and quick to secure, lenders are increasing their portfolios at a rapid rate. An average case presented will complete in approximately 20 working days, as you can see this is so much quicker than the standard re-mortgage.

We are seeing different lending plans emerge daily and this can only be good news for the borrower. Interest rates and fees are reducing as lenders see this market as a growth area in the longer term.

Need some assistance?

If you think this type of loan could assist you in your future planning it is very important to ensure you get the correct deal to suit your needs. There are many different lenders offering numerous second charge loans so please do call our advisers who will be happy to help you achieve the correct loan for your needs.






Booming! Second charge business increase

Second charge business has increased by around a quarter year-on-year a new report just released shows.

From May to July 2017 there were 2800 second charges written  worth £270m, an increase of 24% and 27% compared to the same three months last year. The latest figures show that more customers are taking out a second charge mortgage – for example to fund renovations or help family members with a deposit for their first home.

In July alone there were over 1900 deals worth £90m, a year-on-year increase of 24% and the upward trend is continuing. The £90m July total still represents a fall from £94m in June.

While the ongoing political and economic uncertainty may have had some effect, it’s important to remember the summer months are traditionally a quieter period for activity, so it will be interesting to see what happens in the winter.

The market is robust, demonstrated by four consecutive months of growth, so it looks like lending will continue upwards for the remainder of 2017.

In order for the sector to reach its true potential, it’s hugely important that awareness and availability of second charge loans improves among all concerned. This will help homeowners secure the most suitable financing for their needs in the longer term.

Interest rates remain low at present but its anybody’s guess how long this will be the case.

Can we assist?

If you are looking to raise funds from the equity within your property do make contact and one of our advisers will be happy to help.



More looking to second charge lending.

Tougher lending rules are forcing more homeowners to turn to second charge loans to fund home improvements, such as extensions, and to consolidate expensive debt.

Industry figures show a 28% rise in the sums borrowed this way in the three months to the end of July against the same period last year.

The rise in second charge borrowing – so called because the lender is second in line for repayment behind the mortgage provider if a borrower’s home is repossessed – has been fuelled by rising house prices and the squeeze on household budgets.

The attraction of a second charge lending.

Mortgage rules have become much stricter in the past couple of years, with lenders applying tougher “stress” tests to make sure borrowers can meet repayments if interest rates rise. The consequences of this action are that you may not be able to secure extra funds from your original lender.

Some lenders will consider certain borrowers too risky to increase their loans.

But some borrowers also prefer to leave an existing mortgage in place because they would lose an attractive interest rate if they re-mortgaged, or there might be a steep exit penalty for switching.

By taking out a second charge loan with a new provider, your first mortgage is unaffected, but you need to tell the original lender.

A second charge loan may suit borrowers who have had payment problems, for example due to job loss or illness. These homeowners are often refused an increase on their first mortgage, but a specialist lender will most likely take a different view. More can be borrowed with a loan secured on a home than with an unsecured loan. Personal loans from high street banks are usually limited to £25,000.


If you want to raise capital using your home please do make contact and one of our advisers will be happy to assist.


Second charge applications on the Increase.

The number of loan applications increased by nearly 22% in the month ending July 2017 compared to the same period last year. There has also been a significant increase in the value of applications for second charges in 2017 compared to 2016.

Our finance director commented “I’m not surprised at these figures as second charge lending has a lot to offer the homeowner”. “If you compare a secured loan to an unsecured loan these figures are more than justified”. “Interest rates are at an all-time low and the diverse types of loans on offer will fit most needs

Increasingly borrowers are seeking alternative finance when a conventional re-mortgage is not suitable. This could be due to the current mortgage having early redemption penalties or the current loan being on an advantageous interest rate you don’t want to change.

When should you consider second charge lending?

Second charge loans can be used for many reasons, such as a deposit for a new property investment, buy-to-let and re-development of an existing property to name but a few.

Many borrowers now are also viewing second charge loans as a simple and a cost-effective alternative to mainstream lending.

Second charges are fast and can complete in a matter of days as opposed to months on a re-mortgage.

Can we assist?

When taking out a new loan you should seek professional advice, we have a team of experts waiting to take your enquiry so please do make contact.