Commercial mortgage market update
How is the second charge market fairing at present?
What are the current trends in the second charge market?
What are your expectations for the second charge market over the remainder of the year?
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4 responses from the Newspage communityCopy all
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We are seeing a steady flow in second charge enquiries whether the client is looking to consolidate debts or borrow more for home improvements. Anyone on a low fixed rate mortgage would certainly be better off exploring a further advance or second charge rather than remortgaging and losing their preferential rate.
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Second charge lending climbed 14% in June to £144.5m, compared to May’s £126m. Figures taken for the Loans Warehouse Secured Loan Index
https://www.project-insights.co.uk/securedloanindex/june-2023
The outlook for second-charge lending is positive, whilst the last year has seen rate rises in line with the first mortgage market, in recent weeks several lenders have started reducing rates.
Many borrowers are looking to alternative ways to borrow, remortgaging at this time for many would mean losing a much lower rate fixed rate on the bulk of their secured borrowing.
https://www.project-insights.co.uk/securedloanindex/june-2023
The outlook for second-charge lending is positive, whilst the last year has seen rate rises in line with the first mortgage market, in recent weeks several lenders have started reducing rates.
Many borrowers are looking to alternative ways to borrow, remortgaging at this time for many would mean losing a much lower rate fixed rate on the bulk of their secured borrowing.
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I think there is an uptick in demand for business loans secured by 2nd charges on property. This is driven by a lack of availability of unsecured business loans. However, valuations are dropping and so are 'Loan to Values'.
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The Manchester Mortgage Centre has seen an increase in second charge mortgage business coming forward. I feel this is a direct result of first charge mortgage rate increases and tighter affordability checks.
People are being left behind and the high street must take action to protect their current mortgage business.
We predict in late 2023 / early 2024 as spending increases during the festive period that a further increase in second charge mortgage leads will present themselves.
People are being left behind and the high street must take action to protect their current mortgage business.
We predict in late 2023 / early 2024 as spending increases during the festive period that a further increase in second charge mortgage leads will present themselves.