Following the decrease in the BoE base rate, mortgage rates are down and second mortgage rates have followed suit. We’ve been busy circulating one update after another, with Paragon, Together and other lenders on the panel all announcing reductions to their rates. In with these latest round of changes, some lenders have further improved their criteria to better cater for self-employed applicants and have removed fees to ensure processing is as simple as possible.
Our second mortgage rates now start from 4% and with no ERCs or upfront fees to pay, you could save your clients thousands! If you have a client who is locked into an existing mortgage deal, where they need to raise funds for any purpose, or where a remortgage to release would mean an increase in mortgage rate (as a result of a change in circumstances or simply because of an increase in LTV) taking a second mortgage that applies a higher rate to the additional funds only, rather than the full remaining mortgage balance, can save hundreds annually and thousand across the possible life of the loan.
As well as providing comparative savings, the option of a second mortgage can be the difference between your client attaining their required funds and being declined. Criteria of first charge lenders can impede self-employed or older applicants and with second charge lending taking a more flexible, common sense approach to adverse credit, you may well find that where a re-mortgage isn’t possible, a second mortgage can come through.
If you’d like to learn more about how second mortgages can benefit your clients, we have full product training available for you and your teams. Please contact introducers@loan.co.uk to take full advantage of our support (and clock up your CPD hours in the process!)