When borrowing money whatever the most suitable solution may be, the ability to source second charge products for comparison against first charges means you will get the best deal to suit your needs. The key being that all options have been explored, not ignored.
It pays to get professional advice when seeking a loan that will be secured on your property as a bad move now could cost you thousands in the future. It all comes back to the fact that, if you don’t ask, you don’t get. By not asking the question, you are left in a rather precarious position. An independent professional adviser will have all options open to you and can advise you as to the best solution for your requirements.
Second charge lenders are also indicating they are keen to innovate further and bring products even closer in line to those offered by first charge players. If you add to that a greater degree of flexibility on affordability, you suddenly open up options that previously did not exist via the conventional re-mortgage.
Recent changes introduced by the Prudential Regulatory Authority mean we are seeing more buy-to-let second charge loans due to the affordability stresses that have been put in place. The changes also affect second charges; however, lenders are introducing new criteria all the time, including ‘top slicing’ whereby a client can include their personal income and expenditure to assist with affordability shortfalls.
Yet again, this clearly demonstrates the second’s sector to be forward thinking and unwilling to sit back and just do what it has always done, despite its small size in comparable terms.
The message here is simple: If you are looking to borrow money do not ignore the second charge loan option.