Are you looking to raise funds – but can’t remortgage? There is a solution

Are you looking to raise funds – but can’t remortgage? There is a solution 

There are many reasons why a secured loan may be a viable option. For example, you may have a long term tracker mortgage at a great rate, which you do not want to move; or you may have been declined a remortgage by a high street or specialist lender.

Many homeowners in this situation are turning to Secured Loans. According to data from the latest Secured Loan Index, the amount lent between January 2012 and October 2012 is significantly higher than the entire year of 2011.

Secured loan lending in October stood at £31.9m, an increase of 1.6% on September’s figure of £31.4m. This modest boost emphasises the effects of the UK’s move out of a recession in the third quarter.

October is the fourth month in a row where lending has reached over £30m.

The annual increase in secured loan lending was 38.7% higher than in the same period in 2011, where it stood at £23m. This is the only annual increase October has witnessed since before 2009.

A secured loan, which will take second or third charge on a property, may be a viable way to raise extra capital. This money can be used for a wide variety of reasons, from paying a tax bill or investing in business, to wrapping up other loans or making home improvements.

It would mean that the current mortgage stays in place and the secure loan will sit behind it in legal terms, with the loan being securitised on your home. If a person has been declined by a high street lender due to adverse credit history or affordability, a secured loan is another option to consider.

The interest rate on a secured loan would normally be higher than a traditional first charge mortgage and it is important to run through your affordability with your mortgage broker to make sure you are happy that you can meet the mortgage payments each month.

If you are interesting in finding out more about a secured loan, talk to the team at Harvey Bowes today: 029 2115 6918

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About harveybowes
Mortgage Broker and founding Director of Harvey Bowes Limited. A mortgage broking practice with bases in Cardiff & Poole, UK. We take a fresh and positive approach to mortgage broking which pays dividends for both our clients and frankly, ourselves. The team at Harvey Bowes are expert advisors in all aspects of mortgages from residential to commercial and buy to let.

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