“We have looked at raising the funds as a second charge and then refinancing it onto a first charge when his credit position is good enough to meet lenders criteria.”
There are all kinds of clients for whom second charge lending offers a solution, not just those with poor credit histories or tax bills to pay.
However, this could be one reason why the market has a reputation as a sort of last resort.
Mr Williams suggests second charges can suit high net worth individuals seeking a little bit more flexibility, or those who are developing properties, for example.
He insists: “Most of our business is clean, hardly any adverse and consist of clients not wanting to repay high ERCs.”
Examples like this may help build confidence among advisers and their clients in second charge lending and the usefulness of this type of loan.
eleanor.duncan@ft.com
