Rising second charges

A significant rising number of people taking out a second charge loan to improve their existing homes could hit the new-build property market during 2017.

Some of the UK’s major house builders had been predicting a slowdown in completions during 2017, and that had been further evidenced by an increase in second charge loan applications as more people sit tight and improve their existing property.

Lenders are very aware of this situation and are monitoring it very closely as they want to keep pace with this growing trend.

Anyone who is looking to make some savings this year or to cut back on their outgoings will be looking very closely at any expensive loans they have. This year has seen households around the country taking out second charge loans to reduce overall expensive debt.

Making a saving of £100 or £150 per month on a loan is really not that unusual these days – and who wouldn’t like £1,200 or £1,800 a year in their bank account?

Uncertainty is fuelling this behaviour. I don’t think people are really that bothered by Brexit or the Trump effect – the truth is many people are feeling the pinch and have less money than they did have.

With interest rates at a record low level they can only go in one direction and that is up. There is already some talk of that during 2017 so the chance to negotiate a fixed rate and save money is looking increasingly attractive for borrowers.

Can we help?

If you require some help with your borrowing please do make contact and one of our advisers will be happy to assist.