Second charge lenders in the UK are positive about the future, the majority are expecting this sector of the mortgage industry to grow rapidly according to a new lending survey. Borrowers also expressed a very positive view.
The upbeat outlook from the lenders suggests that the use of second charge loans as a financial tool for homeowners to raise capital is becoming far more established.
Some 78% of lenders expect their business turnover to grow by at least 17%. In addition, they are positive about the prospects of providing a better and quicker turnaround of business as they streamline the application process.
However, they are slightly less optimistic about the long-term prospects of the UK economy, positivity has decreased. The survey report says that this is likely due to the Covid-19 pandemic and the uncertainty of the of the Brexit conclusion.
Lenders are split about the direction of property prices, with 57% expecting slight growth and 43% expecting prices to fall.
The majority remain cautious about future prospects for the UK in a very uncertain world, in which the economic climate can change overnight, lenders are confident that they will continue to prosper.
These finding would seem to support the real boom in second charge lending. There is little doubt a second charge loan when used correctly can be a very good avenue of raising funds for the homeowner.
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