The Growth of 2nd Charge LoansMake Text Bigger
There are many reasons as to why 2nd charge loans are becoming increasingly popular. A second charge mortgage can offer an ideal solution to a remortgage, further advance or an unsecured loan. Today second charges offer very competitive rates. Some of the main reasons for using a second charge loan rather than remortgaging are:
- Current mortgage is on a low rate
- Current mortgage is interest only
- Change in circumstance, drop in income, credit rating has dropped
- Currently in an IVA or Debt Management Programme
- CCJs and defaults accepted
- Mortgage arrears accepted
2nd charge loans can be used for any legal purpose, including:
- Debt consolidation
- Home improvements
- School fees
- Pay tax bills
- Raise a deposit to purchase a BTL or holiday home
Second charge loans are available up to 95% LTV and terms from 3 to 31 years.
The client had an unsecured debt balance of £37,500 costing them £999 pm. They also wished to raise £7,500 for a new bathroom. The client needed to consolidate their unsecured loans because of the high interest rates. Plus they wanted to fix their interest rate as they were concerned about an increase in interest rates.
In less than 2 weeks the client received £45,000, enabling them to pay of the existing loan and to pay for the new bathroom. This also reduced their monthly outgoings by over £430 pm. They had a fixed rate for 5 years with no ERCs which allows them to remortgage when their circumstances change and in the mean time to make over payments.
For assistance with 2nd Charge loans or any type of property finance please contact my team using the form below.