Second charge loans can be used for many reasons, such as a deposit for a new property investment, buy-to-let and re-development of an existing property to name but a few.
Many borrowers now are also viewing second charge loans as a simple and a cost-effective alternative to mainstream lending. A second charge loan is far cheaper in the long run than any unsecured loan, just look at some of the rates on offer from the “payday lenders”.
Many people these days have a lot of expensive short-term loans and credit cards, if you are one do consider alternative loans such as a second charge. Short-term loans and credit cards can have very high annual interest rates so do check to see if you could save in the longer term by switching.
If you want to review your lending do ensure you get the correct advice from a fully qualified adviser as an inappropriate loan can be very costly.
Second charges are fast and can complete in a matter of days as opposed to months on a re-mortgage.
There are many reasons a second charge loan may be preferable over a re-mortgage but there are three key common factors.
- a) Your credit history has deteriorated since you took out your mortgage.
- b) You currently have a mortgage with penalties to change.
- c) Speed of completion.
Second charge loans nowadays come in “all shapes and sizes” and there is likely to be one to fit your needs. The crucial thing is to get professional advice as there are so many options open to homeowners.
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When taking out a new loan you should seek professional advice, we have a team of experts waiting to take your enquiry so please do make contact.