The number of new second charge agreements rose by 31% year-on-year to reach 2,392 in April, the Finance & Leasing Association (FLA) has found.
In April there was £108m worth of new second charge business, up 25% year-on-year.
In the four months to April, the value of new second charge business was £292m, an increase of 19% from the previous year.
In April, the second charge mortgage market reported its highest level of monthly new business volumes since October 2008. It is a competitive and innovative market for consumers and should be taken very seriously if you wish to raise funds using your property as collateral.
In the four months to April, there were 6,500 new second charge agreements, up 25% year-on-year.
Could a second charge loan help you?
There are several reasons why a second charge mortgage might be worth considering:
- If you’re struggling to get some form of unsecured borrowing, such as a personal loan, perhaps because you’re self-employed.
- If your credit rating has gone down since taking out your first mortgage, re-mortgaging could mean you end up paying more interest on your entire mortgage, rather than just on the extra amount you want to borrow.
- If your mortgage has a high early repayment charge, it might be cheaper for you to take out a second charge mortgage rather than to re-mortgage.
Points to consider
Before you decide on a second charge mortgage, it’s a good idea to get advice from a suitably qualified independent mortgage adviser. They will be able to help you find the loan that best meets your needs and financial situation both now and in the longer term. They will have to follow the rules as set out by the FCA when dealing with you. These rules are designed to protect you.
If you would like to know more please do make contact and one of our fully qualified independent advisers will be happy to guide you.