Why a Second Charge Loan could be an ideal alternative borrowing solution

By Liza Campion, Head of Key accounts

Background

Second Charge Loans have been undergoing something of a renaissance in recent years. According to Mortgage Finance Gazette¹, Second Charge lending reached £108 million in May 2019, a 23% increase on the same month last year.

No longer viewed as too expensive, too complicated or only for customers with adverse credit, more brokers and their customers are seeing them as an alternative borrowing solution. They can be used in a wide variety of situations, for example to release equity in an existing residential property, to raise a deposit to purchase a buy to let investment, to carry out home improvements or for business purposes, including paying off tax bills.

How can Precise Mortgages help?

As the UK’s leading specialist lender², our range of Second Charge Loans could be used in a number of different scenarios, including:

• Raising funds quickly
• Protecting an existing first charge rate
• Avoiding the early repayment charges a remortgage could incur
• business use, for example paying off tax bills, aiding cash flow and funding investment

Our loans offer a range of features, including no early repayment charge if your customer decides to repay all or part of their loan early and no assessment fee for cases submitted to us directly.

• Choice of 2 year Tracker and 2 and 5 year Fixed rate products
• Large loans up to £500,000 available
• Available up to 85% LTV
• Near prime range to help customers with a less than perfect credit profile

To find out more about our Second Charge Loans, click here, speak with our Sales Team or call our dedicated support team on 0800 116 4385.

Source: ¹ https://www.mortgagefinancegazette.com/lending-news/second-charge-mortgages/second-charge-lending-surges-ahead-may-05-07-2019/

² BVA BDRC Project Mercury report Q1 2019