Second charge lending on an upward spiral

Second charge lending is fast becoming a sound and solid way for homeowners to put their finances back in order. The majority of people are becoming very wary of the so called “pay day” lenders. Second charge lending has always been in the marketplace but over the last 5 years this form of funding has grown significantly.

A second charge loan is quite simple, it utilises the equity in a property to make cash available at very good interest rates.

What is equity?

This is easy to work out, just take the current value of your home and deduct the outstanding mortgage you may have and what is left is known as equity.


Property Value £250,000 Outstanding mortgage £150,000 Equity = £100,000

Second charge lending has made huge strides in the last 5 years and now should be considered before any decision is made about re-financing your property. Second charge lending offers a fast and effective way to raise capital at a very affordable cost. Interest rates and set up costs offered by lenders have reduced significantly over the last couple of years and now are in line with the mortgage market.

The range of second charge loans are increasing every day with more flexible repayment methods being offered which has found favour with the borrower. Repayment periods are flexible and are generally set to suit the client’s wishes.

Like to know more?

If you are considering taking out a loan please do make contact and one of our fully qualified advisers will be happy to help.