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. A recent client of ours commented “I have taken out a small second charge loan on my property to clear a couple of credit cards and a small pay day loan”. “I have to say the process was fast and efficient and I saved a good deal of money on my monthly outgoings, I would fully recommend this action to anybody if asked.”
Second charge lending has always been in the market place but over the last 5 years this form of funding has grown significantly since regulation.
We are now seeing landlords beginning to utilise this method of raising capital which just did not happen in the past. Landlords with good equity within their properties have seen this route of raising capital as quick and very uncomplicated.
There is no doubt that lenders have seen the potential growth in this area and they have responded very well, offering a good range of flexible loan deals. Two or three years ago there was only a small choice, plus the rates were a lot higher.
In the years gone by if a homeowner or landlord wanted to raise capital from the equity within their home brokers invariably recommended a re-mortgage. This situation is changing as all parties become more aware of the advantages of a second charge loan has to offer. If you are looking to release funds tied up within your property it is strongly recommended to explore this type of loan as you could save a good deal of money, especially on legal fees.
Can we help?
If you would like to know more about this form of lending please do make contact and one of our advisers will be happy to assist.