Second charge mortgages – “Filling the gap”

Thursday, April 26th, 2018

In an evolving mortgage market, the utilisation of second charge mortgages for capital raising appears to be increasing and, in our experience a high percentage of people utilising them are those on longer term fixed rate deals.

Following a spike in the number of people taking 5 and even 10 year fixed rate deals on their main mortgage, many borrowers looking to raise capital are now considering a secured loan to avoid the potentially high early repayment charges that would be applicable if they were to switch mortgage lenders to raise the extra they want.

Of course, many mortgage lenders offer ‘further advances’ and for some this will be a straight forward way of raising the money, although in some instances the rates being offered by lenders for further borrowing are higher than those available in the second charge market.

Need to Raise Capital? Get the Right Advice…

Clearly there are a number of factors to take into consideration when choosing the best way of raising the capital required. For example, a further advance from the existing lender, a remortgage from a new lender or a separate secured loan. In these circumstances, based on what their current and longer-term requirements are, some people prefer to use the services of a professional mortgage and secured loan broker to give them advice on what the most suitable option is.

Secured Loan or Mortgage? A Specialist Broker Can Help You Decide…

Not all mortgage brokers are able to advise on second charge mortgages, and most advisers will simply refer them to a specialist broker who can. Caboodle Finance can provide advice on both mortgages and secured loans, meaning the best outcome will always be achieved once the individual circumstances and requirements have been assessed.

Is a Second Charge Mortgage a better Option?

There are many other circumstances where raising capital via a second charge mortgage may be preferable to a remortgage or further advance, and Caboodle is able to advise accordingly in most situations where the property is the main residence or an investment buy to let.

Would You Like to Learn More?

If you would like to know more about how our friendly approach could help raise the capital you need, please call us here at Caboodle Finance of Sutton Coldfield, Birmingham today on 0121 308 9114 or alternatively, just click HERE to email us via our website.

We very much look forward to hearing from you.

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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 SQ2 House, 240b Lichfield Road, Four Oaks, Sutton Coldfield, West Midlands B74 2UD (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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