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.
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.
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.
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.
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.
Caboodle Financial Services Ltd
240B Lichfield Road
Sutton Coldfield B74 2UD
Telephone: 0121 308 9114