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.
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.
Shekina is the deputy editor at Mortgage Solutions and commercial editor at Mortgage Solutions and Specialist Lending Solutions. She has nearly eight years of experience in the B2B publishing market, having previously covered the hospitality, retail, pet, accounting and jewellery sectors.
Shekina has worked for Mortgage Solutions and Specialist Lending Solutions for almost five years. Here, she covers the market’s breaking news stories, engages with professionals in the sector, and oversees any commercially agreed content in partnership with mortgage-related companies.
This includes presenting webinars and hosting roundtable discussions on developing themes in the mortgage sector.
She is an NCTJ-trained journalist and was nominated for the Headline Money Awards Mortgage Journalist of the Year in 2021.
In her spare time, Shekina likes to read, travel, listen to music and socialise with friends.
She currently reports on current events in the mortgage market and liaises with financial clients to produce sponsored content.
Follow her on Twitter at @ShekinaMS