Positive Signs as Second Charge Mortgage Market Continues to Grow

Wednesday, July 28th, 2021

According to the latest figures provided by the Finance & Leasing Association (FLA), following on from that shown in April, the second charge mortgage market delivered further growth in May 2021. 

Albeit from a low point during the pandemic in 2020, this continued growth and seemingly positive recovery come as a very welcome relief for those within the industry and consumers alike.

Has the Mortgage Market Awakened from Covid ‘Hibernation’?

In fact, from April 2020 (when the market entered a period of ‘enforced COVID driven hibernation’), securing a second charge mortgages had often proved to be a little more challenging than it had been pre-pandemic. That said, more recently, lenders have shown more confidence in the market by reintroducing products and removing any temporary COVID restrictions and associated criteria.

As a result, amid the stampede to beat the stamp duty holiday deadline, many homeowners sought to avoid market “burn up” by instead using a second charge mortgage to raise additional capital against existing property.

A 300% Increase in Activity

All this activity appears to have driven the recent growth which is further reported by the FLA to be almost a three hundred percent increase in May 2021 when compared to May 2020. **

Furthermore, with lender confidence seemingly stabilising and consumer confidence improving, the industry forecasts that there is likely to be year-on-year growth for the remainder of 2021.

Is a Second Charge Mortgage Right for You?

For many, and based on individual circumstances, a second charge mortgage may be the most appropriate solution when compared to a remortgage or unsecured loan. That said, whilst second charge mortgages can often be a great solution for homeowners looking to raise capital for a variety of reasons, it is always best to take advice from an experienced professional broker.

No Obligation Advice

With that in mind, for no-obligation advice in relation to your capital raising requirements, our specialist advisers will be happy to discuss your requirements in more detail and provide a recommended tailored solution.

So, if you would like some more help with any of this, please call one of our friendly experts here at Caboodle Finance of Sutton Coldfield, Birmingham in complete confidence on 0121 308 9114 or alternatively just click HERE to contact us via our website and we will call you back as soon as possible.

We very much look forward to hearing from you.

** Source – Financial Reporter – 05/07/21

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT. CONSOLIDATING DEBTS MAY INCREASE THE TERM AND TOTAL AMOUNT PAYABLE.

Your initial consultation is free and you are under no obligation to proceed with a mortgage we recommend. There will be a fee for mortgage advice. The exact fee will depend on your circumstances and may be reduced depending on the loan amount and any commission we receive from the lender. It is estimated that the fee will be £595, but it may range from £495 to 1% of the amount you borrow. The fee is only payable on completion and can normally be added to the mortgage. This will be discussed and agreed with you before you make an application. Please ask for a personalised illustration.

Secured loan rates from 3.95% APRC, although we have plans available up to 29.9% APRC which allow us to assist customers with the most severe credit problems. The overall cost for comparison is 7.65% APRC. For secured loans a broker fee up to 10% of the loan amount borrowed may be payable on successful completion. A lender fee may also apply. The actual APRC available will depend on your circumstances. All loans are subject to status. Please ask for a personalised illustration.

The guidance and/or advice contained in this website is subject to UK regulatory regime and is therefore restricted to consumers based in the UK.

Caboodle Financial Services Ltd, registered in England at Mere Green House, 46-48 Mere Green Road, Sutton Coldfield, West Midlands B75 5BT (number 08044670).
Caboodle Financial Services Ltd is an appointed representative of PRIMIS Mortgage Network (PRIMIS), a trading name of Advance Mortgage Funding Ltd which is authorised and regulated by the Financial Conduct Authority. PRIMIS is only responsible for the service and quality of advice provided to you in relation to mortgages, protection insurance and general insurance products. Any other product or service offered by Caboodle Financial Services Ltd may not be the responsibility of PRIMIS and may also not be subject to regulation by the Financial Conduct Authority. The Financial Conduct Authority does not regulate some forms of Buy to Let.

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