As we continue our focus on specialist lending trends, this week we’re digging deeper into what makes second charges a key product area to have front of mind right now.
Second charge lending has long been a popular choice for home improvements, particularly when that work results in a significant increase in the price of the property. And with home improvements on the rise coupled with the past/ongoing trend towards longer term fixed first charges, there’s a good chance your clients could be looking for this type of lending.
We also have options for those who have recently purchased their home and need to raise extra funds for improvements. You can let clients in this situation know that they don’t need to wait to apply for second charge lending following completion. As long as the first charge is registered, they can get started on the application right away, getting them one step closer to creating the home of their dreams.
All of our lenders currently allow borrowing for home improvements up to a max. LTV of 95%. We can also achieve up to 100% LTV for loan advances up to £25k. Typically these lenders will lend up to six times the borrowers income.
The lowest rate in the market right now is 3.37% (up to 60%) LTV), making this something your clients may want to look into now.
Not familiar with second charge lending and want to know more? You can read our explainer e-book here
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If you recognise scenarios like this when talking to your clients, why not call us to discuss their options with our multi-award-winning team? You could earn a generous share of the enhanced proc fee; all you need to do is refer the case to us. It’s that simple.
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