Secured lending popularity is increasing on a daily basis. Second charge mortgages or secured loans have increased this year month on month and continue to do so as the year progresses.

The biggest growth area of loans is to the self-employed and buy-to-let landlords, the good news is there are many different plans to suit each individual case. Loans can be fixed for various terms which can give peace of mind, or you may wish to just take the standard variable rate.

This type of lending is so easy and quick to secure, lenders are increasing their product portfolios at a rapid rate. Speed of lending is always a key issue for borrowers and a straightforward case can complete in approximately 16 working days, as you can see this is so much quicker than the standard re-mortgage.

We are seeing different lending plans emerge daily and this can only be good news for the borrower. Interest rates and fees are reducing as well, lenders see this market as a growth area in the longer term.

This is a rapidly expanding area of lending and products are increasing to match the demand. Borrowing money these days is a complex issue and it is vitally important to get the right one that meets your needs in both the short and long term. It is always recommended to seek professional advice when taking out any form of loan.

Need some assistance?

If you think this type of loan could assist you in your future planning it is very important to ensure you get the correct deal 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 you achieve the correct loan for you.

Increases in the second charge loan market suggests economic uncertainty is causing more people to improve their current property rather than move.

Data shows there has been an 8.9% increase in people applying for second charge finance in the second half of 2021, when compared to the same time in 2020.

Figures also show that 51% of these second charges were applied for to make home improvements.

In addition, reports show a 9.2% increase in re-mortgage applications in September compared to the same period last year.

With an increase in re-mortgage applications, slump in the UK housing market and uncertainty around our economy, this could suggest more people are choosing to improve their current properties – rather than take a potential financial risk of moving.

It could be that Covid-19 worries are flattening the property market, meaning fewer people are moving and more homeowners are making improvements to their current properties rather than move during a time when it is still unclear how Covid will affect property prices.

If you are looking to raise funds it’s important to consider a second charge as a solution for a refinancing or home improvement.

Like to know more?

Our independent advisers are fully trained and skilled in all areas of lending so please do contact us to discuss any requirements you may have.

The number of new second charge loans taken out in June was 1,960, up 195% on the same month last year, according to the latest figures from the Finance and Leasing Association (FLA).

The value of second charge business in June was £91m, equating to a 236% increase in value compared to May 2020.

For the three months to April, 5,853 second charge new agreements were arranged, worth £260m.

However, for the full year to June 2021 19,903 new second charge loans were completed, worth a total of £833m, down 24% and 21% respectively.

The second charge mortgage market continued its recovery in June as new business grew for a third consecutive month.  In H1 2021, new business volumes increased by 21% compared with the same period in 2020, and we expect further growth during the second half of this year.”

FLA figures for second charge borrowing in April showed a rise of 176% on the same month last year.

Need some assistance?

If you think this form of loan could assist you in your future planning it is particularly important to ensure you get the correct advice. There are many lenders offering numerous second charge loans, please call one of our independent advisers who will be able to guide you in the correct direction.

Has this pandemic increased your debt?

The coronavirus has left many people financially worse off with debts increasing.

One of the many advantages of debt consolidation is that when done properly it lowers the total amount of interest you are paying. The idea is to consolidate higher interest debts into a single loan with a lower rate. So, the first question to ask is what makes up the bulk of your debt?

If most of what you owe is on high-interest credit cards, you may be a suitable candidate for debt consolidation. Credit card interest rates can run anywhere from 9% to 35% or more. Debt consolidation loans structured as secured loans against property almost always offer significantly lower rates.

Sometimes interest rates and terms are not the two most key factors for debt consolidation. Sometimes the simple matter of needing more money to pay your monthly bills is the priority. So, your next question is whether you absolutely need a lower monthly payment.

Scrutinize your outgoings

Take a look at your budget. If your finances are taken to the brink of disaster every month, you have no room for emergencies or unforeseen expenses. In your case, debt consolidation would also be a good idea if it could substantially lower your monthly outlay. It is better to pay more interest over the long term than face continued problems because you cannot pay monthly bills.

Second charge loans nowadays come in “all shapes and sizes” and there is likely to be one to fit your needs. The crucial thing is to get professional advice as there are so many options open to homeowners.

Essential, get independent professional advice!

If you are looking to raise funds on the equity within your property please do contact us and one of our independent advisers will be happy to assist.

Perhaps you have got plans for the year ahead and want a cash injection to fund things, 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 loans available these days but do be careful, 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 2021

This is the lowest that secured loan 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 – paying off an expensive overdraft or credit card should become a priority moving into the new year, so these low rates are likely to attract many consumers.

It is 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. 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.