Coronavirus – Looking to raise funds?

We are living in very strange times and many things are not clear, if you are looking to raise funds as and when this crisis is over it is strongly recommend getting the “ball rolling” sooner rather than later.

All experts are predicting there will be a huge surge of lending applications later in the year, so getting your requirements in place now would be a sensible move.

Second charge lending delivers much quicker

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”.

A recent survey taken from 1000 homeowners clearly shows speed of completion is a 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.

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.

The last financial year has also 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. One major lender commented “The last 12 months has seen huge changes within the second charge market with faster completions being a key factor to winning business”.

There is no doubt second charge lending has had its most successful year, 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 independent advisers who will be happy to help.

Coronavirus – Looking to raise funds?

We are living in very strange times and many things are not clear, if you are looking to raise funds as and when this crisis is over it is strongly recommend getting the “ball rolling” sooner rather than later.

All experts are predicting there will be a huge surge of lending applications later in the year, so getting your requirements in place now would be a sensible move.

Second charge interest rates are reasonable and stable

For the time being second charge interest rates are likely to remain at their all-time lows. If you are considering a new loan now could be the time to make your move, there is a feeling amongst the experts this trend could soon be reversed.

Second charge loan interest rates have been tumbling for months now. A second charge loan could be used as an alternative to a re-mortgage if it fits your lending criteria. Second charge lending is growing in stature and is now a very serious alterative to the once traditional re-mortgage.

One thing you should do if you are contemplating taking out a new loan is to consult an experienced professional independent adviser as this form on loan will not suit everybody.

Lenders have seen the potential growth in this area of raising funds and have responded well by offering competitive short and long-term packages to suit the majority of requirements. More and more innovative products are coming onto the market all the time which has to be good news for the consumer.

Very important when considering taking out a loan

Remember this is a secured form of lending and therefore will in most cases be far cheaper than an unsecured loan.

These days the choices of loans open to homeowners is vast and it is vital to get the correct one to suit your needs. Making the wrong choice could prove to be very expensive over the longer term so do seek professional advice.

Like to talk over your options?

If you think this form of loan could assist you in your future planning, please call one of our independent advisers who will be able to guide you in the correct direction.

Pre-Coronavirus lockdown lending up 13%

The number of second charge loans agreed in February was 13% higher than the same time last year at 2,435 figures from the Finance and Leasing Association reveal.

However, the data pre-date the covid-19 pandemic hitting the UK and the ensuing lockdown, which put the brakes on the property market.

The volume of loans agreed in February was 9% higher than a year earlier at £107m.

The total number of secured loans agreed over the 12 months to February reached 28,512, an increase of 18% on the previous year.

By value, lending was also 18% higher in the year to February at £1.28bn.

The second charge mortgage market made a positive start to 2020, but the mortgage market faces serve disruption from the impact of the coronavirus on the economy.

Lenders are doing their best to support customers during these unprecedented times, and any customer facing repayment difficulties due to the Coronavirus should contact their lender as soon as possible to discuss the help they need.

Looking to raise funds?

We are living in very strange times and many things are not clear, if you are looking to raise funds as and when this crisis is over it is strongly recommend getting the “ball rolling” sooner rather than later.

All experts are predicting there will be a huge surge of lending applications later in the year, so getting your requirements in place now would be a sensible move.

Like to discuss your lending needs?

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 mortgage, could it help you?

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

Of the minority who were aware what a second charge mortgage was, 28% didn’t understand what the difference between this and a re-mortgage was.

Since April 2017, the second charge market has been 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.

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 substantially over the past 2 years. One thing which is very evident is that consumers have become 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.

Like to discuss your lending needs?

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 market is booming in 2020

Coronavirus – If you are looking to raise funds it is still a good time to start the process and keep “ahead of the game”. We are expecting a very busy period once the restrictions are lifted, therefore making provisions now will speed up the release of funding.

The second-charge lending market used to be a reserve option, used predominantly by near-prime and sub-prime audiences, but it has been transformed by regulatory reforms, product refinement and tighter underwriting.

As a result, it has grown substantially in the past three years

Homeowners looking for lending alternatives

In recent years, consumer awareness of second-charge mortgages has been low, and second-charge lending distribution has been reliant on intermediary referrals.

Following the Mortgage Credit Directive in March 2016, awareness of second-charge mortgages among first-charge brokers and financial advisors has increased.

This has led to a rise in referrals from first-charge brokers – a trend expected to endure as their awareness continues to grow.

Interest rates are far lower.

Historically, interest rates for second-charge mortgages were relatively high and less attractive compared to alternatives, such as re-mortgaging.

The decrease in rates from typically more than 10% in 2015 to around 4% in 2019 as a result of continuing low base rates.

This has made them more attractive and has also made large loans more affordable and accessible to a wider audience.

Rates in the market have decreased to such an extent that they are beginning to converge with first-charge rates, resulting in many consumers topping up with a second charge rather than re-mortgaging the entire sum at a potentially higher rate.

Way forward:

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

Secured lending and the value of professional broker advice

Almost nine in 10 second charge loan applications through an intermediary (broker) resulted in an offer in 2018/19 – up from seven in 10 in 2017. 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.

Lenders remain firmly focused on rigorous affordability tests so that borrowers do not overstretch themselves to achieve their ambitions. Brokers are very 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.

Second charge rates remain low and attractive

For the time being second charge interest rates are likely to remain at their all-time lows. If you are considering a new loan now could be the time to make your move.

Second charge loan interest rates have been tumbling for months now. This type of loan could be used as an alternative to a re-mortgage if it fits your lending criteria. Second charge lending is growing in stature and is now a very serious alterative to the once traditional re-mortgage.

Lenders have seen the potential growth in this area of raising funds and have responded well by offering competitive short and long-term packages to suit the majority of requirements.

This form of loan will not suit everybody, but it is worth exploring with the advice of a qualified independent adviser. Remember this is a secured form of lending and therefore will in most cases be far cheaper than an unsecured loan.

These days the choices of loans open to homeowners is vast and it is vital to get the correct one to suit your needs. Making the wrong choice could prove to be very expensive over the longer term so do seek professional independent advice.

When should you consider second charge lending?

Second charge loans can be used for many reasons, such as a deposit for a new property investment, buy-to-let and re-development of an existing property to name but a few.

Many borrowers now are also viewing second charge loans as a simple and a cost-effective alternative to mainstream lending.

Second charges are fast and can complete in a matter of days as opposed to months on a re-mortgage.

Can we assist?

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

Seconds are so flexible and easy

A second charge mortgage provides an extremely useful alternative where consumers want to raise additional funds but do not want to change their existing first charge mortgage – especially if there would be additional costs in doing so.

Second charge lending has many uses and one of the advantages of this type of loan lies in its flexibility.

It may be the case that those who need to raise funds are not aware they can do so through a second charge which is, of course, where independent advisers and brokers come in. This type of lending can be suitable for a far wider range of situations than many realise.

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.

What’s in it for you?

Fast completion

Low interest rates

No need to change original mortgage

Total flexibility

Loan terms to suit majority of needs

Second charge lending has so many benefits it is worth checking out whether this may suit your needs. Do ensure you seek professional independent advice as there are so many options.

Need some help?

Please don’t hesitate to contact if you require any assistance raising funds, one of our independent advisers will be happy to assist.

Second charge lending – seek professional advice.

When borrowing money whatever the most suitable solution may be, the ability to source second charge products for comparison against first charges means you will get the best deal to suit your needs. The key being that all options have been explored, not ignored.

It pays to get professional advice when seeking a loan that will be secured on your property as a bad move now could cost you thousands in the future. 

It all comes back to the fact that, if you don’t ask, you don’t get. By not asking the question, you are left in a rather precarious position. An independent professional adviser will have all options open to you and can advise you as to the best solution for your requirements.

Second charge lenders are also indicating they are keen to innovate further and bring products even closer in line to those offered by first charge players. If you add to that a greater degree of flexibility on affordability, you suddenly open up options that previously did not exist via the conventional re-mortgage.

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 independent qualified advisers will be pleased to help. 

Is a secured loan (second charge) right for you?

More people than ever before are turning to a second charge mortgage to raise funds rather than taking out a personal loan or re-mortgaging.

A second charge mortgage explained

Second charge mortgages are becoming increasingly popular and are at their highest level since 2008.

A second charge will allow you to borrow a lump sum secured against your property. You repay this extra loan alongside your existing mortgage over a fixed term.

Many people use them to raise money as an alternative to a re-mortgage.

How do you qualify?

To qualify for a second charge mortgage you must be a homeowner, although you don’t necessarily have to be living there. While a first charge mortgage is based on a number of factors, including your deposit, credit score and ability to pay each month, a second charge mortgage is based on the equity available in your property.

What is equity within a property?

This is the percentage of your home owned outright by you. You can easily work this out by calculating the amount you owe on your property against the value of it. So, if your property is worth £200,000 and you still have to pay off £100,000 on your mortgage, you have £100,000 in equity.

You don’t need to have a high credit rating in fact you might even be able to get one with a low score. This is because lenders look more favourably on borrowers with a poor credit rating if they are prepared to borrow against their home. The typical minimum term is 5 years and the maximum is 30 years and they can be paid off alongside your existing mortgage.

You can normally borrow from £1,000 (varies from lender to lender) upwards and the greater the equity in your property, the more you will be able to secure.

Like to know more?

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