Second charge approvals increase

Brokers and lenders alike have welcomed the latest figures showing second charge lending hitting an all-time high in June of this year.

These figures are partly down to the new homeowner awareness of second charge lending and what’s on offer. The lending industry has done an excellent job of spreading the word and showing just how a second charge loan in certain circumstances is better than a conventional re-mortgage.

New and existing buy-to-let investors have started to raise the required deposit levels by taking out second charges on existing property holdings.

July and August been very busy as well with brokers reporting a steady rise in both applications and completions compared to the same period last year.

There is little doubt second charge lending is increasing its popularity month on month. When you compare the interest rates on offer to unsecured lending it is very evident why this form of fund raising is growing in stature.

There are many advantages that a second charge loan offers, not least the quick turnaround time which can be as little as 15 working days. This of course is a great deal faster than a standard re-mortgage which can drag on for months.

As second charge lending grows in popularity new and innovative products are hitting the market on a regular basis. Interest rates have reduced considerably over the last 3 years and they now offer a very attractive overall package.

The largest growth area of this type of funding is via the self-employed workforce. Good news is the lenders have reacted positively to this and look very favourably towards the borrowers requirements.

Second charge lending will not suit every case, it is vitally important to get the correct advice as a wrong choice can cost hundreds extra in unnecessary interest charges.

Help needed?

If you are considering raising funds on your property please do contact one of our fully qualified advisers who will guide you in the right direction.