Monday, June 26th, 2017
Since secured loans, or second charge mortgages to give them their correct title, have been brought under the same regulatory framework as mortgages, the debate has been ongoing as to whether people who are raising capital against their home should do so via a remortgage or by arranging a secured loan.
Although there are sometimes plus points for each possible solution, every scenario will be different and each will therefore potentially result in a different recommendation. In our view, the only way to guarantee that the “most suitable outcome” is achieved is to use a specialist broker, ideally one who can give advice on both mortgages and secured loans.
Also, web based applications that seek to determine outcomes on the numbers alone are mostly unable to factor in individual requirements and other ‘soft facts’ pertinent to a client’s individual circumstances and this can lead to disappointment when early more positive indications of acceptance are reversed later in the application process.
There are many reasons why one solution will turn out to be more appropriate than another given the numerous factors that need to be taken into consideration other than the just the pure number crunching. Any recommended solution must not only meet the clients’ current requirements but should also represent an appropriate outcome for the reasonably foreseeable future.
There are several scenarios where a secured loan may be more appropriate but as always, an applicant’s individual circumstances will determine the actual outcome. More specifically, the most common reasons a secured loan would be recommended as a means of capital raising rather than a re-mortgage are:
In all the above scenarios, the main mortgage can be left as it is and, subject of course to various credit and affordability checks, a new and separate secured loan is then taken out.
Here at Caboodle Finance of Sutton Coldfield, Birmingham we help our clients review and assess their individual circumstances so that they may then secure the best possible outcome. Call today on 0121 308 9114 or just click HERE to contact us by email and we will be delighted to help you determine whether Secured Loans could be “right up your street”!
Caboodle Financial Services Ltd
Mere Green House
46-48 Mere Green Road
West Midlands B75 5BT
Telephone: 0121 308 9114