Paying off bills has become a major issue in the second charge market with three out of the top five broker-related searches cover debt enquiries or people with county court judgements, according to mortgage database Knowledge Bank.
This demonstrates that a number of people are struggling financially and are using their homes to secure debt against. The one constant in January was ‘Maximum loan to value’ which has been the top searched ‘second charge’ criteria since May 2019.”
Broker searches for furloughed workers hit the top spot in the residential market, for the first time since August 2020.
Independent brokers are working with an increasing number of clients on the job support scheme, who were potentially struggling to get a mortgage. This became increasingly difficult in January as lenders have continued to restrict criteria for those on furlough.
As we move into 2021, the mortgage market continues to shift dramatically. There is significant interest in debt consolidation in the second charge market, while the buy-to-let sector continues to attract interest from both potential and existing investors.
The furlough scheme is at the top of brokers requests in the residential category as thousands of families are, or have now been, affected by being on furlough. Just how supportive lenders will be of those that have been on the scheme is still being established.
Need some assistance?
If you think this type of loan could assist you in your future planning it is especially 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.