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.

Buy To Let Mortgages for the retired

Buy To Let (BTL) mortgages for the retired and retirees.

Buy To Let (BTL) mortgages for the retired and retirees.

If you would like to purchase BTL properties but are struggling to find finance, Wise Money has access to products for applicants up to the age of 80 with a maximum term of up to 30 years (this includes Homes of Multiple Occupancy and Limited Companies).

Applicants to age 80
Rates start from 3.29%
Up to 80% LTV
No minimum income up to £1 million loan
Interest-only option available

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

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

New car sales greater than expected

The new car sales figures surprised with the Society of Motor Manufacturers and Traders announcing a huge number of cars had been sold in March- the highest numbers since 1999.

The new car sales figures surprisedwith the Society of Motor Manufacturers and Traders announcing a huge number of cars had been sold in March- the highest numbers since 1999

Although March is notorious for its strong numbers, the amount which were sold had surprised some. The sector’s improvement is welcoming for the UK economy as GBP took a further nose dive yesterday against its major currency pairings as the EU Referendum inches closer.

It looks as if the voting will be fairly tight, with there now being a real possibility of a ‘Brexit’ causing uncertainty with investors and taking some of the back bone away from the pound recently.

Uncertain economic outlook

Last night the FOMC Minutes for March suggested a mixed review with regards to another possible rate hike in April. With global economic uncertainty but better domestic data, the 12 members didn’t see eye to eye which could suggest a rate hike at the end of Q1 is unlikely.

Car and vehicle finance

If you are looking to buy a car, van or vehicle and are struggling to find the finance, then please contact us on the Get Started button- or fill out the free, no obligation form below:get started

Buy To Let loans for landlords

Cheap Buy To Let (BTL) second charge loans for landlords

Cheap Buy To Let (BTL) second charge loans for landlordsAre you looking for a buy to let mortgage? If you are planning to buy a property to rent out you will need a buy-to-let mortgage. As many existing landlords already know, this market has shrunk considerably over the last few years. However, there are still finances out there.

With the chancellor changing the rules on stamp duty for BTL, this white hot market is going into overdrive as investors set out to beat the April 2016 deadline, but sometimes it doesn’t make sense to remortgage in order to release funds. A second charge loan may be a more financially viable solution.

We have a complete range of fantastic second charge BTL loans online.  Please check out the quick free, no obligation form below where you can generate quotes and browse the range of products at anytime or you can call our to discuss your enquiry with our underwriters on 0800 6522 052 quoting Wise Money.

What’s on Buy To Let Loans and Mortgages offer:

£10,000 – £1,000,000 on a second charge basis
LTV’s up to 75%
Rates from 5.79%
ERC: 1 month notice + 1 month’s interest
No personal income required
Any adverse credit over 12 months ignored
Procuration fee 2.5%

Good Luck!

Central Banks meet to set loans interest rates

Thursday will be the tale of two central banks.Central Banks meet to set loans interest ratesThe Bank of England’s MPC finish their two day meeting today with growth, or the lack of it, the main point being debated.

With interest rates still at historical lows, further quantitative easing will almost certainly be on the agenda.

Remember, at the last meeting none of the MPC voted for a rate increase, this is down from three members a couple of months ago (although one of them, Andrew Sentence has subsequently left).

The voting preference at last time suggests worries over a stalling economy is increasingly dominating the rate setting meetings.

Sterling has remained under pressure after the three cent move against the Dollar on Tuesday stemming from the SNB intervention to stop the appreciation of the Franc.

The safe haven status of the Swissy has been checked somewhat by the intervention and the USD dollar has benefitted enormously from inflows.

We expect the market to test the resolve of the SNB at the 1.20 level over the coming days, which should lift Sterling but we keep around the 1.59 – 1.13 levels against both the USD and Euro for a lengthy period until the market is either satisfied that the SNB is serious about maintaining the peg or attempts to take on the bank and push the CHF back towards 1.10.

The ECB, in comparison to the BOE, does have room to cut interest rates and it is likely that they are considering doing so over the course of the next few months.

The betting was for another rise before the start of New Year, which is surely off the table given the deterioration in the world economy over the previous month.

The situation is complicated slightly by the arrival of a new ECB head before Christmas, who may want to gain a hawkish reputation early and do this by holding rates steady more than the market is forecasting, but the change in bias has definitely shifted from rate hikes to more of a wait and see which should translate into a slightly weaker Euro moving forward.

Bank of England thoughts on interest rates

The Bank of England’s MPC minutes on interest rates were released this morning with no real surprises among the announcement. Bank of England thoughts on interest ratesThe committee voted 7-2 in favour of keeping the base rate at 0.5% while as usual; only member Adam Posen wanted an increase in the quantitative easing measures from the current £200bn.

The views on future inflation were largely the same as previous meetings with price rises being monitored closely while growth outlook suggested underlying gains in Q2 with some softening in Q3.

The overall opinion is that little has changed since June’s meeting and this was reflected with Sterling moving back to the levels it opened at this morning.

The Eurozone has another data light day today with most movements coming from investor opinions and sentiment.

The ongoing debt issues remain with the IMF and ECB still trying to hammer out a second bailout for Greece.

The US received some positive news last night with President Obama reporting that a proposal for cutting $3.7 trillion from the US government deficit including an immediate $500bn deficit reduction is edging closer to conclusion.

The cut would include both tax hikes and spending cuts with President Obama calling it a “significant step” in the crunch talks.

The news though will be overall negative for the Greenback as it may rule out a default (which was never going to happen), but it will mean having to print more Dollars and therefore, weaken the currency.

Bank of England split on interest rates

Wednesday saw both the Federal Reserve and Bank of England reveal details of interest rated decisions from recent meetings.Bank of England split on interest ratesThe Bank of England minutes, taken with Governor Mervyn King’s speech the night before, were interesting because it revealed much more about the dove/hawk divide within the MPC than the Fed release.

Three members voted against the proposition of holding rates – Andrew Sentance was joined by Martin Weale in voting for a rate increase with Adam Posen again the most dovish, voting for an extension to the QE program.

Merv spoke on Tuesday evening, outlining the banks view that we are in the midst of the largest squeeze on real incomes since the 1920’s, and that inflation is likely to stay above target for most of this year.

Just as we thought things were getting better!

Growing uncertainty over the UK economy is keeping Sterling in check against the Euro and Dollar and this is unlikely to change until we find out if the last quarter was just a blip on the continuing road to recovery or something much worse.

In the Feds case, the meeting was also yesterday, and again the Fed reassured the markets of the continuing economic recovery.

Again the Fed expressed concern over the labour market but the key point the markets will take from an otherwise as expected release is the continued lack of dissenters on the FOMC.

We will get the hard data supporting the Feds’ stance on Friday, when US 4th quarter GDP figures are released.

Although parts of America also suffered a prolonged cold snap in December, we are not expecting this to be used as an excuse for a disappointing number!

Deutschland uber alles including Dublin

Uncertainty about Ireland’s debt crisis has helped support the dollar recently as markets remain focused on Ireland’s financial woes. Deutschland uber alles including DublinEurozone ministers have screwed the Irish into accepting a joint European-IMF mission to Ireland that could prepare the way for a bailout to prevent its debt crisis spreading to other countries.

Currencies are see-sawing as year end book closing has prompted a lot of short dollar positions built up over the past couple of months to unwind, exacerbating losses in the euro.

The Pound could come under pressure should Ireland resist assistance given UK banks’ large exposure to the country.

Sterling edged up against the dollar and euro on Wednesday after an unexpected fall in jobless benefit claims and as the Bank of England showed it had held its three-way split at its latest policy meeting.

Data showed the number of Britons claiming unemployment benefit fell by 3,700 in October, the first fall since July and confounding expectations for a rise of 5,000.

Separately, minutes from the Nov 3-4 BoE Monetary Policy Committee meeting showed one member wanting more stimulus, another voting for a rate hike and the remaining seven keeping policy on hold and ready to act in either direction.

That was likely to reinforce expectations policy would remain on hold well into next year until the outlook for the economy became clearer.

Interest rates decisions for BoE and ecb

Today is all about monetary policy meetings with the UK and the Eurozone committees all deciding on levels for interest rates for the next month.
Interest rates decisions for BoE and ecb
As with previous months it is a fairly common view that both the MPC and the ECB will decide to leave their respective rates on hold, resolving to also leave the levels of QE unchanged as well.

For the MPC, that will be it for a week or so until the minutes of the meeting are released.

I would expect Andrew Sentance to once again prove to be the lone dissenter for leaving rates unchanged although it would be a shock if there was not evidence of protracted discussion amongst the members over the stubbornly high level of inflation and its effect on the UK economic outlook.

This is also the first meeting attended by Martin Weale therefore the minutes will also be awaited to discover his thoughts and voting intentions.

UK banks making huge half year profits- whilst restricting lending

George Osborne has said that banks must increase lending to businesses rather than boosting bonuses and dividends now that they have weathered the worst of the credit crisis. UK banks making huge half year profits- whilst restricting lendingBritain’s Treasury chief said that banks “have an economic obligation to assist” small and medium-sized businesses.

The statement comes in line with half-year figures released this week that are expected to confirm that the major institutions have returned to profit after two years of turmoil.

Lloyds Banking Group, which is 41% owned by the taxpayer, and the 84% state-owned Royal Bank of Scotland are both expected to post a profit. But Osborne questions the ability of British businesses to raise credit from the banks.

“The danger is that, particularly next year, when there is a huge amount of refinancing required, that the small and medium-sized businesses suffer from a lack of access to working capital,” he said.

Osborne continued that British banks “are in no doubt that the government wants to see reasonable access to credit on reasonable terms in the small to medium-sized business sector.”

The expected bank profits have boosted the recent Cable rally and we are now trading in the 1.58s and well on track to the key 1.60 psychological level.