Second charge loan advantages and benefits:
There are many very good reasons to consider a second charge loan over a re-mortgage and these are just a few.
- Speed of completion
- Flexible repayments
- No early repayment fees
- Much lower set up charges
A secured loan can be used in many situations to assist a client get their finances back on track. When a client has a poor credit rating or even CCJ(s) they often do not want to go down the route of a debt management plan (DMP).
Also, the client may have a very good mortgage deal currently running with penalties to change. A re-mortgage isn’t always the answer as there are other alternatives that can assist most situations.
What we are seeing is secured loans being used to settle unsecured debt that has built up over the years gone by. This could be a simple loan or a number of high interest credit cards which eat into the monthly family budget. A secured loan can be raised on the existing property which will have one lesser payment each month helping the client get back control of their finances.
Second charged lending is growing in stature every year and figures show clients are very receptive to this form of lending.
Like to know more?
If you are looking to raise a loan please do make contact and one of our advisers will be happy to guide you.