Second charge secured loans by Wise Money

The improving economic climate and general house price increases have led to an increase in of second charge secured loans following their virtual disappearance after the financial crisis of 2008.

The changing face of second charge secured loans

The changing face of second charge secured loans

Traditionally, second charge secured loans were seen as a last chance saloon product.  Rates were much higher than mortgages and redemption penalties were fairly hefty.  But as rates started to drop off in 2006, the pandemic of self-certification of income led in part to the financial crisis of 2008 and a £6 billion a year secured loans industry quickly became a £150 million industry, a trickle of its former self.

Today however, the market is once again robust with packagers and lenders are back in full swing, albeit at a much more sensible £1 billion a year. Interest rates (starting at 4.55%) are much lower than ever, redemption penalties are extremely low and coupled with no set-up fees for the vast majority of secured loans, they are a very attractive solution in a variety of circumstances.

Second charge secured loans can be used for any legal purpose but are mainly used for:

  • home improvements
  • consolidation of credit cards, store cards and unsecured loans
  • purchasing vehicles
  • paying for a wedding/honeymoon
  • injecting cash into businesses
  • paying for school fees
  • paying tax bills
  • cosmetic surgery

How do second charge secured loans work?

As the name suggests, a second charge secured loans works very much in the same way as a first charge mortgage in that it is a sum of money lent out, secured against UK residential or investment property via a second charge behind the first charge registered by the main mortgage lender.

How much can be borrowed?

For a loan secured on a residential property, the minimum loan size for a second charge secured loans is just £5,000 and we arrange loans all the way up to £2.5 million.

For buy to let properties, we can arrange loans up to £500,000 but should the requirement be there, we would be able to refer the loan amount if more than this was required.

How long can a loan be taken out for?

Typically a loan is lent out between 3 and 25 years.  There are some lenders who offer 30 year terms.

The term of a loan is dependent on several factors, depending on the purpose of the loan.

The second charge secured loans process

Although not set in stone, the process with most packagers is fairly simple:

You provide your basic enquiry details (loan amount, purpose, term and contact) by telephone, email or sourcing system.

Once the client is happy with the deal, a mutually convenient time is agreed upon for a document courier to collect signatures and evidences.

Following receipt of client’s signed documents and evidences at the packager’s office, references and valuations are organised.  Case is re-checked for compliance.

With references and valuation received, the case is packaged and once a final compliance check is completed, case is sent to lender for final packaging and offer.

Once the offer has been made, it is sent out to the client by post and/or email to you.  You then have a 7 day reflection period in which to think about and return the signed offer and in doing so accepting the terms therein.

Interested? Then please call Keely McKay Wise Money’s Second Charge Secured Loans Advisor on 02921 670418 for a free, confidential, no obligation chat. NOW.

Business finance to help your business take off

Looking to expand your business? Need some working capital? Buying some machinery, equipment or vehicles?

Looking to expand your business? Need some working capital? Buying some machinery, equipment or vehicles?Wise Money are pleased to announce we have access to an innovative provider of business loans from £5,000 to £1 million. They provide a quick and simple service, with a decision typically made in a couple of days and funds transferred soon after.

Loans can be used for almost all business purposes: unsecured loans from £5,000 – £250,000, secured loans from £100,000 – £1million, asset finance and property finance (up to £3million).

✔ Interest rates from 6% (average annual interest rate of 9.4%*)

✔ Fixed rate, monthly repayment loans from 6 months to 5 years

✔ No application fees – only pay on acceptance

✔ No early repayment charges, settle any time

✔ No business plans or forecasts required

What can you use this loan for?

  • Working capital
  • Asset purchase
  • Liability payments
  • Expansion and growth
  • Most purposes

Does your company have two years of trading history?

Is your business stable and creditworthy?
Do you have a UK resident Director?
If YES to the above, apply for a loan today!

Business must be able to afford the loan and will be assessed for approval at time of application.

Please just click on the Get Started button- or fill out the free, no obligation form below:get started

King signs off with optimistic review

Mervyn King has signed out with an upbeat final quarterly inflation report with growth forecasts increased and inflation forecasts scaled down.King signs off with optimistic reviewKing expects to see unemployment gradually come down which backs up the official data today which showed unemployment levels falling.

The big positive is the expectation that growth expectations are looking rosier and at the same time inflation is softening, previously it has been the other way around.

The report is good news for consumers that have been hit with persistently high inflation and no end in sight for a return to growth.

Although the report gave a short term boost to the Pound on the upbeat growth forecasts, this was short lived as overall we expect the pound to fall in line with a more aggressive Bank Of England as Mark Carney replaces Mervyn King as Governor.

The sparks of life are now evident but until we see the UK economy truly fire into life we can expect the Bank Of England to be proactive and more aggressive which is likely to weaken the pound.

In other news Japanese preliminary GDP beat estimates and this help to continue the positive risk sentiment in Asia until it was dampened by weaker Japanese earning reports.

In the currency markets the Euro came under renewed pressure against the USD as speculation increases for a further rate cut from the ECB following yesterday’s disappointing Q1 GDP data.

In addition the US Dollar is making gains after hints that the Fed is moving closer to exiting their QE strategy.

UK’s retail sales figures continue to disappoint

More doom and gloom last week for the U.K. with Retail Sales figures coming in largely under consensus showing a second straight contraction in the figure.UK's retail sales figures continue to disappointIn contrast, as markets continued to soar, we also saw strength returning to the US Dollar after a disappointing start to the week. the

GBP/USD fell below 1.55 for the first time this year. GBP/EUR continued to fall in the opposite direction again struggling to stay about 1.16 and an uneventful week for EUR/USD battling to stay above 1.33.

As the U.K. continues to struggle with high inflation and low to non-existent growth we have Wednesday’s claimant count that is expected to show more positive news on joblessness with the figure contracting again.

Also, the MPC minutes will be released on Wednesday to see the voting from the last interest rate meeting with last week’s inflation report it will be interesting to see if the committee is leaning towards more QE.

Over the weekend, the G-20 Summit in Moscow ended on Saturday with apparent thumbs up for “un-intentional” and no direct weakening of currency rates as part of wider monetary policies.

On the other sode of the pond we have a potentially quiet week this week for the US Dollar with Wednesday’s FOMC meeting minutes being released to see how sentiment is towards the continued monetary policy currently in place and whether or not the Federal Reserve will continue on its current course until the end of 2013.

On Thursday, inflation was expected to have increased with US Existing Home Sales expected to have fallen back again as the property market struggles to get back on its feet.

UK housing market on the rise

Cold weather deterred fresh sellers and would be buyers into the market in January, but property sales continued to pick up across the UK-  according to the latest survey from the Royal Institution of Chartered Surveyors (RICS).UK housing market on the risePrices remained steady and Peter Bolton King of RICS suggested the “very worst” could be over for the property market.

Lending and sales have been improved by the Funding for Lending Scheme.

The quantity of new homes being put on the market, combined with the number of new enquiries from potential buyers, both fell last month however RICS suggest that this was possibly because of the cold weather across most of the UK.

Completed sales rose by 5% last year to 932,000, according to HM Revenue and Customs (HMRC).

That was the peak level of sales since 2007 and the financial crisis.

Fresh figures from the Bank of England suggested that the number of mortgages agreed by lenders for home buyers rose in December for the fifth month in a row and are a good indicator of future sales.

This morning UK Inflation remained steady for the fourth straight month according to the figures from the Office for National Statistics.

In the report the consumer price moved at a seasonally adjusted 2.7% in January unmoved from December against an expectation of 2.8%. Month on Month prices fell 0.5% compared to expectations for a 0.4% decline, after rising 0.5% in December.

Following the release of that data, Cable has fell from 1.5668 earlier today to 1.5584 at the time of writing. As for the rest of the day markets will turn their attention to a Draghi press conference in Spain which he will conduct with Spanish PM Rajoy at 14.30GMT.

UK GDP number keeps wise money market guessing

This morning sees the release of the preliminary 4Q GDP number in the UK at 9.30am. UK GDP number keeps wise money market guessingIts fair to say the market is not expecting a surprise to the upside, with Sterling breaching new lows against the Dollar and Euro in the Asian session overnight.

However with the market so oversold if the GDP number does read significantly higher than consensus expectations you sense there is room for a 60-70 pip rally in the Pound.

But it’s a big if given the picture painted by recent data flow. It is the key data point today and will set the tone for Sterling trading for the next few days, whatever the number this morning.

In Europe this morning, and probably adding to Sterling’s woes, the ECB releases data for the early repayment of the 3-year LTRO money.

The news that major banks are paying back LTRO money early is very euro positive, at least in the near term since it marks a major turning point the euro crisis and reaffirms the recent mutterings of EU officials that the worst of the crisis is over.

Whether or not that is the case remains to be seen, but the currency markets will certainly lap up the positive sentiment should it be revealed at large number of banks repay money ahead of schedule.

US data is light on the ground today but new home sales are released later and are expected to show strong growth and continue to indicate a generalised pick up in the US housing sector. A very positive development indeed.

US House passes debt ceiling extension

The US House of Representatives yesterday passed a bill that gives a short term extension of federal borrowing authority and the senate is expected to follow suit in the coming days.US House passes debt ceiling extensionThis pushes back the decision until mid July and in the short term clears the risk of debt default for now.

This should help to keep the momentum into risk firm which will also be boosted by Chinese flash HSBC PMI which rose in January and confirms the fifth consecutive month of expansionary PMI.

However a larger swing into risk is being tempered by news that North Korea will conduct a nuclear test ‘targeted’ at the US following further sanctions.

This has seen EUR/USD so far capped at 1.3350- a level which it has been unable to push cleanly beyond this over the last few days.

On Friday eurozone banks will have the option to re-pay part of the LTRO drawn from the ECB.

According to Deutsche bank this could be euro positive and could provide the momentum for a push up to 1.35 on EUR/USD.

Economic data today is dominated by PMI numbers- so far we have seen a very poor French PMI and a good German PMI which has led to some volatility in EUR/USD.

We have also seen Spanish Q4 unemployment come in at a whopping 26.02%. Later today we have jobless claims from the US.

Wise money markets return to normal after Sandy Storm

After a fairly quiet start to the week with the US markets closed for most part, markets returned to normal operations late last evening.Wise money markets return to normal after Sandy StormMost investors who were getting out of risky assets on the news of hurricane Sandy, flocking to the greenback, squared off positions and moved into other markets overnight.

This caused the US Dollar to strengthen in the earlier part of the week, with the single currency losing a bit of momentum and getting back to over 1.61 levels.

Markets chose to ignore most of the poor economic data emanating from Europe, as they focussed on near term activity ahead of announcements later this week.

Also there were figures from the Chinese PMI Index which showed manufacturing has dipped ever so slightly but still above the level to warrant growth.

The unemployment figures from Europe do not make for pretty reading as they further increased to 11.5% for September, rising a percent from the earlier month.

For the second month in a row, we also had the Chicago manufacturing report which showed a further contraction in the region.

This has led the euro/US Dollar pair to break below the temporary spike it had over the 1.30 mark as we begin today at 1.2925 levels.

The weakness in the euro has increased further on news that the EU government continues to push Greece for further spending cuts and austerity measures, before they can provide the €31 billion tranche of funding for the debt ridden nation.

On the other hand, news from Greece looks even more bleak as they have forecast a worse than expected reading for the next year’s continued recession.

Two of the biggest unions have called for an ‘austerity strike’, as the country grapples with soaring unemployment, which has now reached to 1 in 4 people being out of work.

Credit rating Moody’s downgrades Spanish regions

Moody’s the credit rating agency has cut the debt ratings of five Spanish regions, following the decision to keep its rating on Spain at one level above junk last week.Credit rating Moody's downgrades Spanish regionsThe areas included: Andalucia, Extremadura, Castilla-La Mancha, Catalunya and Murcia who have seen their ratings dropped by one or two notches thanks to “very limited cash reserves… and their significant reliance on short-term credit lines to fund their operating needs”, according to Moody’s.

Eurozone debt rose to another record high according to official figures from Brussels’ yesterday.  Overall the sizes of deficits were reduced but countries were still adding billions of euros to their debt piles.

The level moved to 87.3 per cent of GDP within the Eurozone, up from 85.4 per cent in 2010, and 70.2 per cent back in 2008.

The extent of Eurozone states’ shortfalls reduced somewhat to a combined level of 4.1 per cent of GDP, from 6.2 per cent in 2010 – however this still meant an extra €390.7 billion government debt.

Elsewhere the broader European Union area, only six countries saw their level of debt as a percentage of GDP fall from 2010 to 2011, while 21 saw it worsen.

In spite of Chancellor George Osborne promising a reduction in government spending, the UK’s shortfall continued to be one of the largest in Europe.

Only Ireland, Greece and Spain logged a greater annual deficit that the UK .

Compare this with the  powerhouse economy Germany, which dropped its budget deficit less than 1% of GDP in 2011 from 4.1 per cent in 2010 and its debt fell to 80.5 per cent of GDP from 82.5 per cent.

Finally, EU members Sweden, Hungary and Estonia succeeded to stop the trend and record budget surpluses in 2011, even with the on-going economic decline across most of the euro region.

This morning, Sterling temporarily dropped below the key psychological level of 1.60 dropping to 1.5996.

The Pound’s movements will be interesting to watch on the run up to the much anticipated GDP figure which comes out on Thursday which should prove the UK is officially out of recession.

The figure will be flattered by the automatic rebound from the lost working day due to the Queen’s Diamond Jubilee in June and the addition of Olympic ticket sales.

The ONS has estimated that the extra bank holiday wiped 0.5pc off growth in the second quarter and the ticket sales will add 0.2pc to growth in the third quarter.

Economic results signpost directions for the wise money markets ahead

It was reported this morning that the UK could return to growth by the end of 2012 with high street sales expected to prove a pivotal fighting ground to lead the recovery, in a somewhat optimistic view with stabilising employment and lower inflation being the lynchpin of the situation.Economic results signpost directions for the wise money markets aheadCPI data from China this morning has pointed at another fall in inflation, MoM, for the republic, which will be a relief to the nation’s people as they continue to struggle with crippling inflation and a lack of domestic demand for goods.

With GDP data out this week for China there it is expected to show further declines.

Angela Merkel, stating in her weekly podcast last week, said that Greece is taking longer than expected to implement the key reforms to receive Troika aid but in a turnabout face stated they should be given more time to implement this which comes as a surprise.

However with IMF Chief Christine Lagarde also warning that financial reform is affective momentum recovery, we could be seeing the powers that be start to realise you cannot budget cut your way out of a slump.

US retails sales out today are expected to show further declines for the nation as the general public are slowing starting the pump cash back into the ailing system.

This is a key economic indicator and comes as Ben Bernanke’s QE3 starts to take shape.

We have a heavy week of data this week with CPI and RPI from the UK, USA and Eurozone and ZEW German Economic Sentiment data on Tuesday with  Chinese GDP and UK Retail Sales on Thursday and Existing home sales US on Friday to draw a close to the week.

The markets will also be awaiting the results and press conferences for the EU Summit on Thursday and Friday.