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.
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.
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.
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.
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
Caboodle Financial Services Ltd
Mere Green House
46-48 Mere Green Road
West Midlands B75 5BT
Telephone: 0121 308 9114