Commenting on the FLA’s announcement that there has been a further reduction in second charge repossessions, Buster Tolfree, Commercial Director – Mortgages, United Trust Bank said:
“The fall in second charge repossessions in 2016 to only 0.07% demonstrates that the market is evolving and improving. The positive influence of FCA regulation, MCD and the move to MCoB continues to validate the second charge sector which provides an improved choice for consumers and a viable alternative to remortgaging, especially if customers have an early redemption charge on their first mortgage or are looking to raise additional funds over a different term. Intermediaries are becoming increasingly aware of the benefits of second charges in terms of speed and flexibility and as this grows, so will the market.
[pull_quote]Second charge interest rates are at the lowest levels ever seen and lenders have some extremely competitive offerings.[/pull_quote]
“UTB offers tracker rates from +3.9% p.a. and 5 year fixed rates from 5.4% p.a. With current economic conditions suggesting that the Bank of England Base Rate will stay at current levels for at least the near future, this bodes well for new second charge borrowers, the growth of the sector and for continued low levels of second charge defaults and repossessions.”