Second Charge Mortgage Providerschargeback mortgage lender
Mr Tristram always says that this kind of financing is brokered through an agent who specialises in secondary mortgage lending, with the agents mainly having recourse to the overwhelming bulk of creditors. In this way it is ensured that customers not only profit from the broker's in-depth expertise and expertise, but also obtain the most appropriate credit.
Whilst in the past the industry has provided this kind of financing for the debt consolidations and home enhancements, Mr Tristram says that second charge mortgages can be used for any juridical purposes, includin the purchase of real estate investments and fundraising, to satisfy the trade requirements. Having been hit hard by the downturn, Mr Tristram says that the mortgage second fee markets have grown significantly over the last 24 month, leading to competitive lending and falling interest levels.
Second-charge debt is typically less than the initial fee and can be between £5,000 and 2.5m, with the actual credit limit averaging around £50,000. The interest on second-charge mortgage due at the date of writing this guidance in September 2014 starts at 4.95 per cent per annum starting from a lifelong Bank of England prime interest bracket.
Tristram says, "The sector is not just powered by a loan scoring, so you can now find interest levels of only 4.95 percent that are available to customers who might not necessarily be benefiting from the cheapest interest levels in the mortgage martin. Alan Cleary, executive manager of Precise Mortgages, says there are many advantages to a second mortgage that consumer and finance advisors should consider.
Mr Cleary says in many cases that it may now be quite inexpensive for the borrower simply to fund raising funds by using a second fee credit instead of remortgrading his first fee credit. Also Mr. Cleary says that second charge mortgages are available over expressions of up to 30 years or can be linked to the expression of the first charge mortgage; so for some borrowers does this flexibility constitute the main advantage of this kind of financing.
He highlights the major disadvantage of second mortgage loans, which is the same as when you apply for a mortgage product: if the debtor is unable to pay back the mortgage, there is a chance that he may loose the real estate. Promise Solutions CEO Steve Walker says the biggest disadvantage of a secure mortgage is that interest tends to be higher than mortgage interest, but admits the shortfall has decreased significantly.