2018 is progressing well with brokers reporting a steady rise in both applications and completions compared to the same period last year. A broker in London commented, “seconds offer speed, flexibility and affordable interest rates for all homeowners wanting to raise funds”. “Since regulation lenders have reduced set up costs and interest rates”. “The homeowner is steadily gaining confidence in this form of fundraising”.
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 (standard case). This, of course, is a great deal faster than a standard re-mortgage which can drag on for months and months.
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 fundraising 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.
This form of lending is specialised and if you wish to raise funds using the equity within your property do get qualified advice as a wrong move could prove very expensive.
Lenders are reporting the largest growth area of this type of funding is via the self-employed workforce which includes landlords (buy-to-lets). 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.
Can we help?
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.