Video: Second charge mortgages can boost Bank of Mum and Dad lending power – West One Loans

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  • 03/06/2021
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Video: Second charge mortgages can boost Bank of Mum and Dad lending power – West One Loans
Second charge mortgages can provide finance for those who want to help children or grandchildren get onto the property ladder, West One Loans has suggested.

 

Speaking on Specialist Lending Solutions Television, the lender’s managing director of second charges, Marie Grundy said there were “opportunities,” for second charge mortgages to support family-assisted borrowing. 

Grundy said: “It may be for borrowers who have savings, but don’t necessarily want to use all of those to donate to family members. Or to give them a larger deposit so they can access lower LTV lending in the first charge market. 

“That’s why we brought out specific criteria to support that borrowing.” 

In May, the lender upped its second charge lending limit from 80 per cent loan to value (LTV) to 85 per cent. West One Loans reduced rates and the minimum loan size. It also widened the criteria to borrowers from any profession and to allow annual bonuses.

“It’s becoming more and more popular over time and hopefully other lenders will follow suit and second charges will be recognised as a really ideal way of accessing that type of borrowing,” Grundy added. 

Watch the fourth and final part of the video series [7:07] below, hosted by editor of Mortgage Solutions, Victoria Hartley. 

 

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