"Were seeing higher business volumes and our individual underwriting on each case and pragmatic solutions are also key factors in the increased volumes."
Equifinance, the specialist second charge mortgage lender, says the latest industry volume analysis shows that current market conditions are providing the perfect time for second charge mortgages. It has seen a 65% increase in lending volume since MCD was implemented.
With statistics showing the re-mortgage market stagnant or falling as homeowners take advantage of low interest rates and little desire to move lenders, the Finance and Leasing Association report higher levels of second charges, up by as much as 6% by value and volume and the biggest increase since MCD was implemented.
This is no coincidence. The advantages of second charges is being explained a lot better, alongside re-mortgage considerations, and more homeowners are opting for a secured loan to sit as an extension to their primary mortgage debt, without worrying about early repayment charges.
With house prices having risen significantly in recent years the equity available to homeowners is more than ever in recent times – making a second charge the obvious choice to raise funds in order to clear debt or improve their home.
Tony Marshall, Managing Director of Equifinance commented: “There’s never been a better time to unlock the equity in a home. High property values and low mortgage rates has created perfect conditions for homeowners to make use of their primary asset to resolve other aspects of their finances which may have been brushed under the carpet for a few years. Favourable market conditions across a number of measures, means that second charges are clearly seen as the flexible choice for many, and we’re seeing higher business volumes as a result. Our individual underwriting on each case and pragmatic solutions are also key factors in the increased volumes.”