Second Charge loans completing quicker:
The time it takes to complete on a second charge loan has reduced significantly following the removal of the 16 day cooling off period. Within the industry it is believed the new rules applicable to second charge lending have helped improve the customer perception by removing out of date borrower protections.
These changes put second charge lending in a position to rival both bridging loans and re-mortgages when speed of completion is the driving factor.
It is early days but it’s plain to see the new Mortgage Credit Directive (MCD) legislation has significant advantages for borrowers and lenders alike.
The industry is seeing a new application in a straight forward case complete in a matter of days rather than weeks. In the past should the borrower wish to amend their initial loan amount a new cooling off period was required, thus increasing the completion time by a further 16 days.
When taking out a second charge loan the majority of cases do not require a solicitor and not only does this speed up the process but keeps the initial costs to a minimum.
Second charge loans are growing in stature every day, borrowers see this type of loan as a cost effective alternative to other forms of lending.
Should you require any advice or assistance in raising a new secured loan please do contact one of our fully qualified advisers.