A second charge loan can solve many problems

For customers who have unconventional modes of income or employment, or those who are locked into fixed-rate mortgages. Also you may have a prohibitive Early-Repayment Charge or wish to borrow at a higher loan-to-value ratio or protect an existing mortgage rate. These are just a few of the scenarios in which re-mortgaging options can often be unsuitable.

Second charge lending plays a vital role in the structure of personal financing and has a very important part to play in the future. This form of funding offers speed and flexibility which high street lenders simply cannot compete with.

Borrowers over the last 2 years have grown in confidence and are using second charge finance for many different uses. The costs of this form of lending have reduced significantly over the past few years, therefore making second charges far more competitive and practical than in the past.

The second charge sector has changed dramatically for the better over the past 5 years as lenders have seen the gap in the market for this type of loan. No longer is a second charge seen as a last option and is now a serious player in the short and long-term lending market.

The industry’s huge growth over the last few years proves homeowners have become aware of the ways this form of loan can help their plans progress. This type of loan is quick to complete, a straightforward case can be finalised in just a matter of days rather than weeks which always help’s the borrower.

Like to know more?

When taking out a new loan you should seek independent professional advice, we have a team of experts waiting to take your enquiry so please do make contact. 

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

A second charge loan is quite simple, it utilises the equity in a property to make cash available at very good interest rates.

What is equity?

This is easy to work out, just take the current value of your home and deduct the outstanding mortgage you may have and what is left is known as equity.


Property Value £250,000 Outstanding mortgage £150,000 Equity = £100,000

Second charge lending has made huge strides in the last 5 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 affordable cost. Interest rates and set up costs offered by lenders have reduced significantly over the last couple of years and now are in line with the mortgage market.

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.

Like to know more?

If you are considering taking out a loan please do make contact and one of our fully qualified advisers will be happy to help.

Re-mortgage or a second charge?

Why would one opt to take the second charge route rather than re-mortgage?

Lots of reasons actually. For example, many customers have a really good first mortgage deal, maybe a great fixed or tracker rate that they don’t want to give up. Taking a second charge at a higher rate may mean that the blended rate across the whole debt is still lower than a new first deal, so a second charge loan can make good financial sense.

Some borrowers may face a stiff early repayment charge on their first mortgage if they re-mortgage. Others may have had a change in their circumstances which means switching to a bigger first charge mortgage is not an option. Perhaps they started a family or changed jobs resulting in a different source of income. Let’s not forget, second charges can be considerably quicker to complete than re-mortgages, especially with the expanded use of Automated Valuation Models.


Raising funds or borrowing money 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 do 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.

Way forward

Second charge loans do not suit every need and it is vitally important any potential borrower seeks professional independent advice from a qualified adviser. If you would like to discuss a potential loan please do contact one of our fully qualified advisers.

Second charge lending is completing even quicker

Second charge lending continues to grow in stature month on month as homeowners look for loans at affordable rates.

A recent survey of homeowners looking to borrow found in order of priority:

Survey findings

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. This financial year has also seen a significant reduction in set up costs plus interest rates are at the lowest ever recorded.

Second charge lenders have been quick to recognise the importance of speed in completing a deal as competition increases.

Borrowing money these days is a complex issue, a second charge loan could be just what you need but please do understand it may not suit every need. Best advice is to seek professional independent advisor assistance.

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 qualified advisers who will be happy to help.

Is your credit score a concern when borrowing money?

Homeowners, do you turn to credit to help make ends meet?

Could a second charge loan could help you?

It is an increasingly popular solution as those credit agreements can quickly add up – and monthly repayments could start getting out of control as a result. With these extremely hard and strange times we are living in more stress is just what we all do not need.

Why not consolidate?

Turning debts into a single, more affordable monthly payment could make a huge difference to your finances, and with loan rates so low, it could be a great time to give this idea serious consideration.

A second charge loan may be the answer

According to the latest research, the ongoing cuts to secured loan pricing mean that customers who switch or take out a new loan today can save hundreds of pounds over the term of their agreement.

This is largely thanks to intense competition between providers. Quite simply, lenders want you to come to them for your borrowing needs as they’ll earn interest from you, and they’re willing to lower their rates in order to secure your business. So why not take advantage?

Your monthly repayments could be far lower by consolidating your credit cards, for example. You may even want to consider taking out a new low-rate loan to replace a current one which may be far too expensive.

Please remember before you decide seek professional independent advice as this WILL NOT suit every situation.

Can we help?

If you would like to review your current loans and require more information how a second charge loan could help you please get in touch.

Second charge loans are definitely helping the Self-employed

It has always been more difficult for self-employed people to get a mortgage compared to salaried employees. For that matter second charge loans have historically been somewhat harder to obtain for the self-employed as well.

At the heart of the issue is a tendency among self-employed individuals to not be able to satisfy loan companies looking to placate their own fears that the borrower will not be able to make good on his or her loan.

The good news is that things are changing – at least where second charge loans are concerned. This is particularly welcome news especially in these hard times we are currently living in. First Brexit and now Covid19!

Lenders are changing the way they do business in order to better serve self-employed applicants. For example, one specialist lender indicated that it had reduced its tax calculation requirements while others are changing their income criteria to make it easier for borrowers to document their income.

Second charge lenders can do a lot more to help the self-employed than primary mortgage lenders because they have much more flexibility. They are finally taking advantage of that flexibility to find ways to better serve self-employed borrowers.

Even more encouraging is the fact that lenders are coming up with a lot more specialised product to suit the majority of needs.

Need help or information?

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

Get professional independent help it pays.

A new campaign is being launched very soon to tackle mortgage and second charge loan myths and highlight the importance of professional advice when it comes to taking out a secured loan.

More stringent lending rules are making it tougher to get a mortgage, and yet new research shows that more than half – 58% – of consumers, including many landlords, may end up with the wrong loan, because they are unaware that a mortgage broker can offer a greater product choice than a bank or building society.

This new study found that nearly 30% of respondents thought that brokers and banks have access to the same products, when in fact using an independent broker can give you access to nearly 15 times more products.

When asked whether they agreed with a series of statements about mortgage advice, one in six thought their bank or building society would be able to give them access to the same impartial advice as a mortgage broker.

The Mortgage Myths campaign aims to put the spotlight on misunderstandings like these, highlight the valuable role of independent advice from a mortgage broker and encourage consumers to speak to an adviser about their lending options.

As an industry, there clearly is a significant amount of work to be done to change these attitudes, educate consumers and promote the advantages of using a mortgage broker.

Although some consumers appear to believe they have secured the best deal possible by going directly to their lender, without speaking to a broker they could be missing out on thousands of lending products that might be even better suited to their needs.

Like to know more?

Please do make contact and one of our fully qualified independent advisers will be happy to help.

Second charge loans set to increase

The first reports on second charge financing of 2020 are suggesting that the rise in new business numbers recorded in 2020 will continue in 2021.

However, it is felt that the increasing popularity of secured loans did not happen without a lot of effort from brokers and lenders alike. What the new figures don’t reveal is just how much arduous work has gone into building business volumes by awareness. The second charge industry should be particularly proud of how it has succeeded in promoting secured loans to brokers and the public.

It is believed that the sector is more likely to grow at a measured pace rather than a “boom & bust” situation, backed by the increasing numbers of advisers who are now aware of where secured loans can sit in their advice process.

If you look closely at the positives a secured loan can offer a borrower, then it is easy to see why this form of lending is being welcomed by all.

Lender choices

The last 12 months has seen a substantial increase in the number of loan types available to a property owner. Not only this but new lenders have entered the market which has to be good for the long-term growth and stability of the second charge industry.

The broker

These days due to the vast choices open to the prospective borrower it is vital they get a professional adviser to point them in the right direction. With so many loans and re-mortgages available anybody contemplating taking out loan would be very well advised to seek independent broker advice.

Can we assist?

If you would like to discuss your future and present borrowing needs, please do make contact and one of our qualified independent advisers will be pleased to help. 

Secured lending, the value of independent advice.

Almost 9 in 10 second charge loan applications through an intermediary (broker) have resulted in an offer this year, this is up on last year’s figure of 7.4 in 10.

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. Using an independent broker will give you a much larger choice of loans to choose from.

Lenders remain firmly focused on rigorous affordability tests so that borrowers do not overstretch themselves to achieve their ambitions. Brokers are positive about future prospects, as two thirds said they were very confident in their own business’ activity for 2020 and beyond.

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.

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 at some stage, especially with the Brexit and current pandemic situation.

Careful consideration should be given to fixing your rate and an independent broker will explain all the pros 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 independent advisers will be happy to assist.