Monday, March 28th, 2022
The demand for second charge mortgages has grown in recent months. As more homeowners take longer term fixed rates on their main mortgage, there has been a notable increase in enquiries for additional borrowing.
In the last few years, more homeowners who were buying or remortgaging a property have taken advantage of what were historically low interest rates locking them in for a period, usually 5 years.
Although this has meant many homeowners have secured these low rates for an extended period (compared to the previous trend where 2-year fixed rates were flavour of the month), this has in many cases resulted in there being fewer opportunities to reconfigure a mortgage without potentially incurring an early repayment charge. The Second Charge Mortgage Solution
Consequently, many homeowners who are looking to raise additional capital have considered using a second charge mortgage alongside the further advance and unsecured loan options, to avoid any potentially significant early repayment charges which may result from repaying an existing mortgage within the original lender’s fixed rate period.
There are many scenarios that would lead to a homeowner looking to raise additional capital, but historically, one of the most popular ones is for home improvements.
During the coronavirus pandemic, many people realised that they wanted or needed extra living space and have subsequently embarked upon a journey to improve or extend their existing property rather than try to find a new one. This has resulted in many homeowners seeking advice from a mortgage broker to establish the best and most cost-effective way of raising the funds they need.
Many factors will be taken into consideration when deciding and recommending the best course of action and an experienced mortgage broker will analyse the customers’ individual needs and circumstances and then recommend the most appropriate solution from all the available options.
Choosing the wrong option could cost a homeowner many thousands which is why many decide to get professional help from a mortgage adviser who can help guide them through the process. With that in mind, please check out our testimonials by clicking the link HERE!
Then, if you would like to know more about how the professional advisers here at Caboodle Finance of Sutton Coldfield, Birmingham could help, call them today on 0121 308 9114, or alternatively complete our online enquiry form and one of our experts will be in touch.
We very much look forward to helping you.
Caboodle Financial Services Ltd
Mere Green House
46-48 Mere Green Road
West Midlands B75 5BT
Telephone: 0121 308 9114