Brokers and lenders alike have welcomed the Bank of England’s latest figures clearly showing second charge lending hitting an all-time high.
The figures highlight new and existing buy-to-let investors have raised the required deposit levels by taking out second charges on existing property holdings. Landlords have been hit from all angles of late, but this doesn’t seem to of dampened their enthusiasm.
2018 has started well with brokers reporting a steady rise in both applications and completions compared to the same period last year. A broker in Sussex commented “second charge lending has in our view taken off in a big way”. “Seconds offer speed, flexibility and decent interest rates for all homeowners wanting to raise funds”. “Since regulation lenders have reduced set up costs and interest rates”.
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. Lenders have been quick to recognise the increase in popularity and have responded in a very positive manner with a wealth of new and innovative products.
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 and months.
Lenders are reporting the largest growth area of this type of funding is via the self-employed workforce which includes landlords. Raising funds for the self-employed or contracted worker can be a challenge indeed but second charges do offer far more flexibility, so they are worth exploring.
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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.