According to the latest figures from the Finance and Leasing Association, the trade body for second charge lenders, 21,288 people took out a second charge over the 12 months to the end of November last year. This was a 9 per cent rise on the previous year.
The aforementioned figures ring true for Brightstar with February business levels increasing from January this year. This can be attributed in part to continued product innovation from our lenders, which is in turn leading to greater acceptance of second charge mortgages for clients looking to raise capital against their home.
The buy-to-let regulatory changes brought about by the PRA also continue to strengthen the opportunity to assist clients through a second charge mortgage, with some lenders continuing to assess affordability of the additional borrowing on rental cover at just 115% of the 1st & 2nd charge monthly payments.
We have seen an increase in enquiries where clients need to raise funds on their property to settle tax bills following HMRC introducing new rules where they will no longer accept credit card payments for this purpose. Read our case study of the month, which shows how a second charge mortgage was used to raise funds for a clients tax bill.
February has also seen the second charge division receive its highest levels of customer feedback since we launched our Trust Pilot account. We are proud to have received so many positive reviews which has led to an overall score of 9.5, excellent rated score for the business. You can view how happy we make our introducer’s clients by clicking here
READ our case study of the month and find out who our product of the month goes to…