Secured lending and you

A second charge mortgage (secured loan) is a loan that allows you to use the equity (difference between what you owe and its value) within your property as security and it effectively sits on top of your existing mortgage. Usually this second loan would be arranged via a different lender to your existing mortgage, there are plenty of specialists in the market place offering various options. On completion of the second charge it then means you will have two mortgages on your home. The main mortgage will always take precedence over the second loan.

Second charge lending is very useful when the homeowner wishes to raise funds and the first mortgage secured on the property has charges to change. This is not always the case and it is highly recommended to seek independent professional advice before you decide the best route to follow.

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 your 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.

Choosing a loan

This is no easy task as there are so many different options open to the majority of applicants. Be sure you know how much you feel comfortable in repaying each month and seek independent professional advice as to the best loan to suit your needs.

Need some assistance

If you think this type of loan could assist you with your future planning make sure you get the right one to suit your needs. There are many different lenders offering numerous second charge loans so please do call our independent advisers who will be happy to help.

Looking for an affordable loan?

 Second charge loans are widely available through specialist lenders, yet this latest research suggests it’s only the minority of people who explore them as an option when looking at ways to raise money.

Awareness has improved over the last 2 years, but borrowers still are unsure as to the benefits.

Of the minority who were aware what a second charge mortgage was, 30% didn’t understand what the difference between this and a re-mortgage was.

Second charge lending is now regulated by the Financial Conduct Authority, as part of its Mortgage Credit Directive. This means they are now more strictly governed with regards to affordable lending, giving consumers more peace of mind. Previously they fell under the FCA’s consumer credit agreement.

Anybody contemplating taking out a new loan would be well advised to seek independent professional advice as making an incorrect choice could be very costly.

For some borrowers, a second charge mortgage will be a better option than a re-mortgage, so it’s surprising that so many consumers are unaware of what they are and how they work.

There can be several reasons that a second charge might be the preferred option. For example, you may not want to extend the term on your current mortgage, or lose a good rate, particularly if your circumstances have changed or you have an interest-only mortgage that might be difficult to replace.

Demand for this kind of loan, particularly when it comes to funding home improvements has increased over the past 2 years. One thing which is very evident is that consumers are becoming very aware of just how much they are paying for any unsecured loans they may have.

For those thinking of raising money by releasing equity in their properties, it’s important to explore both second charge and re-mortgages.

Can we help?

If you would like to know more about raising funds from the equity within your property do make contact, one of our fully qualified independent advisers will be happy to assist.


Second charge lending completing faster than ever before

A recent survey taken from varying types of homeowners clearly shows speed of completion is a very key factor when taking out a new loan. Obviously the costs and interest rates were very high on the list of wants but speed was very important also.

Second charge lending continues to grow in stature month on month as homeowners look for loans at affordable rates. Homeowners are becoming very aware of the costs associated with unsecured lending and the so called “pay day lenders”.

One of the big appeals of a second charge loan is it meets all the surveys key facts such as costs and speed.

On average a second charge loan is completed within 15 working days, this does of course vary dependant on the complexity. 2019 has seen a significant reduction in set up costs plus interest rates are at the lowest ever recorded.

Lenders have seen their market share grow at a rapid rate. They have been quick to recognise the importance of speed in completing a deal as competition increases.

There is little doubt second charge lending has had its most successful year in 2018, the good thing is lenders have taken this on board and reacted positively to meet the challenges.

Need some assistance

If you think this type of loan could assist you with your future planning make sure you get the right one 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.

Raising funds using a secured loan

Have you woken up with a bit of a financial hangover lately? Perhaps you’ve got big plans for the year ahead and want a cash injection to fund those plans, or maybe you need a new car or home appliance? Well, whatever your reasons for needing a loan, you can now snap one up for the cheapest ever rate.

There is a great choice of secured loans available these days but do be very careful as a lot of the unsecured deals carry heavy interest rates. Secured lending (second charge) can be very cost effective indeed with record low interest rates currently on offer. They are relatively easy to apply for and funds can be released much quicker than a traditional re-mortgage.

Lowest loan rate on record

This is the lowest that secured lending rates have fallen, which will delight borrowers looking to consolidate their debts. It has come at a particularly difficult time of year for those who may be stressed over their finances and spending too much over Christmas perhaps – paying off an expensive overdraft or credit card should become a priority, so these low rates are likely to attract many consumers.

It’s worth pointing out that these record-low rate second charge loans are unlikely to be around much longer as experts are predicting general rate rises all round due to Brexit. So if you are looking to raise funds it could be a good idea to act sooner rather than later.

Can we help?

If you are looking to raise funds and require help please do contact one of our independent advisers and they will be pleased to guide you.


Self-employment and borrowing money can be tough

The latest figures from the Office for National Statistics show self-employment is at its highest point since records began over 40 years ago, this means nearly 17% of UK workforce is now self-employed.

This ever-increasing sector of the UK workforce is probably the most in need of specialist lenders. A large number of high-street lenders appear not to be interested in them at all as they see them as high risk.

This also applies to not only the self-employed but pretty much any working person in non-standard employment. Regular lenders seem to class this category of the work force as “too difficult” thus the need for specialist lenders.

If you are self-employed and have a current mortgage a second charge loan could be just the help you are looking for. Second charge loans are fast to complete and far more flexible than any re-mortgage. A second charge loan offers a quick affordable solution to raising cash secured on your home.  As lending to the self-employed is a specialist market it is recommended to contact an independent broker to get advice as to which loan suits your needs. Independent brokers have access to various lenders who offer very competitive rates in all areas of lending.

One of the many advantages of a second charge loan is it does not affect the first charge mortgage sitting on the property. In this case it makes a second charge a very cost-effective option and can save thousands on exit fees on the first charge mortgage.

Need some help?

If you think this form of loan could assist you in your planning please do get in contact and one of our qualified advisers will be happy to guide you in the correct direction.