What to consider when taking out a secured loan (Second charge)

Possibly more challenging than deciding whether or not to take out a loan is finding the best secured loan for your needs. Always bear in mind when selecting your loan the terms and interest rates being charged plus any associated fees. Always compare the fees, conditions and the interest rate before deciding.

Most importantly seek professional advice as to the most suitable and cost-effective loan to meet your needs now and in the longer term. An independent broker will have access to a large selection and will be able to advise you accordingly.

Other things to consider are

  • Is it a variable or fixed rate loan? Remember that variable rate loans may charge lower interest but could change their rate at any time.
  • How long will you have to pay the loan off? The shorter the term, the higher your monthly repayments are likely to be, but also the sooner you will be able to repay the loan. If you’re not confident you’ll be able to repay it in the minimum term offered by the loan provider, a longer term with lower monthly repayments might be a safer bet.
  • How will your credit score impact the rate you are offered? Sure, you can get a secured loan with poor credit, but that doesn’t mean you’ll get the advertised rate, which the lender only has to offer to the majority of applications, not all.

The criteria, much like the loan amount, can often come down to personal preference and circumstances. Generally speaking, the lower your loan to value (LTV) – and therefore the greater amount of equity you have – the better loan you can get. Just like with regular first charge mortgages, a low LTV marks you as being less risky to the secured loan provider, as you’re essentially borrowing a lower percentage of your home’s value.

Need some assistance?

If you would like to know more about secured lending and how it could help you please do make contact and one of our advisers will be happy to help.

Second charge lending on an upward spiral

Second charge lending is fast becoming a sound and solid way for homeowners to put their finances back in order. The majority of people are becoming very wary of the so called “pay day” lenders. A recent client of ours commented “I have taken out a small second charge loan on my property to clear a couple of credit cards and a small pay day loan”. “I have to say the process was fast and efficient and I saved a good deal of money on my monthly outgoings, I would fully recommend this action to anybody if asked.”

Second charge lending has always been in the market place but over the last 5 years this form of funding has grown significantly since regulation.


We are now seeing landlords beginning to utilise this method of raising capital which just did not happen in the past. Landlords with good equity within their properties have seen this route of raising capital as quick and very uncomplicated.

There is no doubt that lenders have seen the potential growth in this area and they have responded very well, offering a good range of flexible loan deals. Two or three years ago there was only a small choice, plus the rates were a lot higher.

In the years gone by if a homeowner or landlord wanted to raise capital from the equity within their home brokers invariably recommended a re-mortgage. This situation is changing as all parties become more aware of the advantages of a second charge loan has to offer. If you are looking to release funds tied up within your property it is strongly recommended to explore this type of loan as you could save a good deal of money, especially on legal fees.

Can we help?

If you would like to know more about this form of lending please do make contact and one of our advisers will be happy to assist.

Home owners are in a very strong position

Homeowners have choices if they wish to raise capital, they could re-mortgage or take out a second charge loan secured on the equity within the property.

The latest data released has revealed that the average value of a house across the country is at an all-time high. This information puts the homeowner in a very strong position if they are contemplating raising finance and using the home as security.

Second charge lending has made huge strides in the last 6 years and now should be considered before any decision is made about re-financing your property. Second charge lending offers a fast and effective way to raise capital at a very reasonable cost.

Interest rates and set up costs offered by lenders have reduced significantly over the last couple of years in line with the mortgage market.

In the past re-mortgaging was by far the most popular route taken when fund raising was required but not anymore.

The range of second charge loans are increasing every day with more flexible repayment methods being offered which has found favour with the borrower. Repayment periods are flexible and are generally set to suit the client’s wishes.

As a homeowner now is a very good time to borrow money using your home as collateral. A second charge loan WILL NOT suit everybody, so, if you wish to raise funds do contact a qualified adviser as to the options open to you.

Can we help?

Please do make contact if you wish to know more about raising capital using your home as collateral.

Second charge loan choices are increasing

It’s, without a doubt, secured lending popularity is increasing on a daily basis. Second charge mortgages or secured loans have increased this year month on month and continue to do so as the year progresses.

The biggest growth area of loans is to the self-employed and buy-to-let landlords, the good news is there are many 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 variable rate.

This type of lending is so easy and quick to secure, lenders are increasing their product portfolios at a rapid rate. Speed of lending is always a key issue for borrowers and a straightforward case can complete in approximately 16 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 well, lenders see this market as a growth area in the longer term.

This is a rapidly expanding area of lending and products are increasing to match the demand. Borrowing money these days is a complex issue and it is vitally important to get the right one that meets your needs in both the short and long term. It is always recommended to seek professional advice when taking out any form of loan.

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 you.

Second charge lending potential

Also known a secured lending

Second charge loans can be a very useful facility for managing overspending and could help resolve debt problems that may have built up over the years.

For those borrowers on a favourable mortgage deal with the first charge lender, they can keep that deal and use a second charge loan to pay off or consolidate their other debts.

Second charge loans in the majority of cases will complete much quicker than a re-mortgage which can prove vital in certain circumstances.

There are some very clear benefits a secured loan can offer when used correctly which could well improve borrowers long term financial prospects. Although consolidating debt is not always the right answer, a secured loan is often a suitable option given the lower interest rate charged when compared to an unsecured loan.

There is little doubt that this form of lending will continue to grow as it has done over the last three years. The majority of borrowers are waking up to the fact that unsecured lending is far too expensive both in the short and longer term.

If you are looking to improve your finances a secured loan could very well suit your needs, it is very important to seek professional advice as there are so many options to choose from.

Help required?

As a borrower finding the correct loan for your needs can be a very daunting task, there are so many options available to the majority. If you are contemplating refinancing please do make contact with one of our fully trained advisers, they will be happy to assist you in making the right choice.