Second charge mortgages – also known as secured loans – were once seen as a last resort. Today, however, with rates close to traditional mortgage rates, no early redemption charges, fixed rates, and loan to value rates (LTVs) of up to 95%, second charge mortgages are an attractive option. There are many scenarios when a second charge will be a profitable alternative for raising capital – seconds can also offer a welcome haven from some of the restrictions on the first charge market.
Why A Secured Loan?
The increasing focus on the mortgage market and restrictions on lending have made the option of a secured loan even more favourable for clients who need to capital raise. Secured loans can be used for virtually any legal purpose, and are generally quicker to complete than a remortgage. A secured loan can also enable clients to borrow money – particularly helpful if you do not wish to disturb your current mortgage arrangements. Loan sizes are available from £10,000 right up to £2,500,000, and with loan terms of up to 25 years, a secured loan is often a credible alternative to a remortgage. Secured loans have the added attraction of no upfront costs and there is no requirement for a solicitor to be involved in the transaction.
Secured loans, What is available?
Who are secured loans available to?
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Historically second charge mortgages, sometimes known as Secured Loans, were often seen as a last chance option. The rates were much higher and carried hefty early repayment charges. Fixed rates and Loan to values up to 95% – second charge mortgages are often a very attractive option.
There are many scenarios when a second charge may be a beneficial alternative when looking at capital raising – seconds can also offer a welcomed haven against some of the restrictions on the first charge market.