Second Charge Approvals:
Brokers and lenders alike have welcomed the Bank of England’s latest figures showing second charge lending hitting an all-time high in March.
These figures are partly down to the rush of buy-to-let landlords increasing their portfolios before the stamp duty changes took effect. New and existing buy-to-let investors raised the required deposit levels by taking out second charges on existing property holdings.
April has started 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 28 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 we are seeing new and innovative products hitting the market on a regular basis. Interest rates have reduced considerably over the last 2 years and they now offer a very attractive overall package.
Lenders are reporting 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 this area of lending.
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.