Homeowners are increasingly turning to second charge mortgages to raise additional funds without having to change their existing mortgage deal.
The second charge mortgage market saw 27.5% growth in lending and transactions in October compared to the same month last year.
It follows a slowdown in September where figures were largely unchanged from 2016 and continues the significant growth of the sector earlier in the year.
According to recent data, 1,880 second charge transactions were completed in October this year with a value of £85m – up 19% and 20% respectively compared to October 2016.
The figures were also notably up on September 2017 where just 1,580 transactions were completed totaling £72.8m.
Whether it is to fund renovations, help a family member with a deposit, or consolidate household debts, more borrowers taking out second charge mortgages – many at a higher value – and this has led to a strong year for the sector.
The market is cautiously optimistic that this increase will continue into next year, but it is important that brokers and homeowners are aware of the range of specialist financing options on offer.
A second mortgage continues to be a useful option for customers seeking to raise additional funds without wanting to change their existing mortgage. To find out more you should always contact a professional adviser as the options available are vast and varied.
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If you are looking to raise funds secured on your property please do make contact and on of our advisers will be happy to help.