Almost nine out of 10 Second charge loan applications through an intermediary (broker) resulted in an offer in 2017 – up from seven in 10 in 2016. What is more four in five of those offers went to completion, up from seven in 10 the year before.
In particular second charge borrowers have benefited from widely available and competitively priced deals. This is a tribute to the lenders who have expanded their portfolios of loans available to the majority of homeowners.
With the Bank of England base rate on a slow upward trajectory, lenders remain firmly focused on rigorous affordability tests so that borrowers do not overstretch themselves to achieve their ambitions. Brokers are very positive about future prospects, as two thirds said they were very confident in their own business’ activity for 2018.
The rise of lenders willing to help second charge borrowers and greater innovation in the market means more and more borrowers are securing cost effective loans to meet their needs. There are still several obstacles to overcome and it is vital for lenders to continue to innovate and adapt criteria to meet the changing needs of the second charge borrower.
If you are looking to take out a loan in the near future, you should keep in mind that interest rates are likely to increase sooner rather than later. Careful consideration should be given to fixing your rate and a broker will explain all the pro’s and cons helping you make the correct choice.
If you would like to discuss your lending requirements, please do make contact and one of our advisers will be happy to assist.