Your client might be looking to borrow for any number of reasons, from consolidating expensive debts to funding home improvements. Whatever their need, the common route of remortgaging a property might not always be the most appropriate option for your client.
- Up to 95% loan-to-value
- Borrow up to £2 million
- Interest rates from 4.4%
- No upfront costs
- Three-week completion average
Remortgaging could mean foregoing a favourable interest rate, or it may force your client into paying an expensive early redemption charge. And for some clients, remortgaging might not even be an option due to the recent tightening of lending criteria following the Mortgage Market Review.
In such instances, a secured residential second charge mortgage might prove far more suitable. For a start, they can prove cost-effective as there are no upfront costs for clients to pay. Second charge mortgages might also be easier to obtain for those with a poorer credit rating – and the amount that can be borrowed is often higher than a standard ‘unsecured’ loan.