Speaking on Specialist Lending Solutions Television with Shawbrook Bank, the lender noted it was seeing a greater number of self-employed people taking out second charge loans.
Caroline Mirakian, head of intermediary distribution at Shawbrook, said: “Previously a second charge loan would be seen from an employed customer but now we’re also finding a substantial amount of customers are self-employed.”
And she continued that loans were no longer just typically for home improvements and debt consolidation.
“Now we’re finding loans will be for various purposes: paying a tax bill, purchasing an investment property, helping a child get on to the property ladder by providing them a deposit, even repaying a Help to Buy balance which is a pertinent subject right now.
“So all sorts of reasons. I think we had one recently which was to purchase a boat, so a second charge is for many uses,” she added.
[For intermediaries only]
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