Second charge lending totalled a new post-credit crunch record of £138.4m in February, posting a year-on-year increase of 83%.
The figures from second charge lenders, showed a strong start in 2022 as January had a lending total of £111.4m.
The number of loans written was all but identical between December 2021 and January 2022 at 2,500 and 2,494 respectively.
The average loan size jumped from £44,673.90 in January to £46,522 in February.
Meanwhile, the average loan term increased significantly between January and February 2022 from 15 to 21.5 years.
This could be a result of the increased cost of living and a sign consumers are trying to bring payments down to their lowest level due to fears of what is coming next.
Second charge lending – seek professional advice.
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.
These days due to the vast choices open to the prospective borrower it is vital they get a professional adviser to point them in the right direction. With so many loans and re-mortgages available anybody contemplating taking out loan would be very well advised to seek independent broker advice.
Can we assist?
If you would like to discuss your future and present borrowing needs, please do make contact and one of our independent qualified advisers will be pleased to help.