Second Charge Lending
TSLE2020: Second charges are not just for debt consolidation – United Trust Bank
Second charge mortgages have a number of uses which go beyond consolidating debt, said United Trust Bank.
Presenting at The Specialist Lending Event in Birmingham, Mike Walters, head of sales – mortgages and bridging, said he had come across mortgage brokers who felt the purpose of a second charge was limited as was the amount of cash that could be released from the mortgage.
Walters (pictured) said this was not the case as in just one week, United Trust Bank had lent on second charges to fund tax bills, divorce settlements, schools fees and holiday homes.
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Investment opportunities
He also said investment into buy-to -let properties was becoming an increasingly popular use for second charge mortgages.
“Releasing equity from the residential property as a second charge to purchase a buy-to-let as an investment opportunity is a real common theme we’re seeing quite a lot of at the moment,” he added.