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.

Help required?

If you would like to discuss your lending requirements, please do make contact and one of our advisers will be happy to assist.

Raising funds at any time in life especially nowadays can be very daunting and expensive if you get it wrong. There will be various reason you need to raise cash and many options open to the majority. First piece of advice to heed is to get professional advice as the wrong loan over a period of time could cost thousands more than you need to pay.

Generally, a second charge or secured loan will be cheaper than one unsecured but again please seek advice as this is not always the case.

Using a reputable broker will help eliminate a lot of the questions as they are experienced with all types of lending.

Some reasons why a second charge could be right for you:

• When you want the money quickly! 

Secured loans can be quick to set up, and in some cases where the loan to value is low and a valuation isn’t necessarily required, money can be released very quickly. Usually however, this process can be longer and may take a week or so. Generally, the time from application to money in account is a great deal quicker than a re-mortgage.

• When you’re struggling to prove your income 

For self-employed applicants looking for a first charge mortgage, it’s currently possible to get a mortgage with one or two years accounts as an absolute minimum. For secured second charge lending things can be more flexible and certain lenders will accept business turnover, and even 9 months bank statements as proof of income. This is helpful for those who have recently gone self-employed or changed trading style.

• When you have more severe credit history that mortgage lenders won’t accept. 

At the moment, main mortgage lenders can be quite flexible with their criteria when it comes to poor credit mortgage lending, accepting bankrupt or customers with CCJs etc. so long as they have the right equity and income. With secured lending however, there are certain lenders who will consider a much wider and severe range of credit issues, often at higher loan to values.

Help required?

If you are looking to raise money from the equity within your property, please make contact and one of our advisers will be pleased to assist.