For many business owners, borrowing finance against their home presents itself with a number of issues, many of which are emotionally charged.
- What if I cannot keep up repayments?
- What happens if my business folds?
- How could my decision impact my family?
- It’s natural for borrowers, to have these types of concerns. However, how would they feel if they were unlocking capital that is currently sitting in a second property that they also own?
Last year a report revealed there had been a 30% increase since 2000 in the proportion of adults that own multiple properties, meaning that one in ten UK adults, or 5.2 million people, now own a second home.
With the UK House Price Index stating that the average price of a UK home now stands at £226,906, that means there is some £1,179,911.2 million of value currently held in UK housing stock being used as second or multiple owned homes.
There are several reasons why people choose to purchase more than one property. Some might aspire to have a holiday or weekend home, some may opt to use the property for rental income to augment their pension in retirement, or others as a project to renovate, sell on and reinvest.
Whatever the reason is behind choosing to own multiple properties, if you are speaking to a business owner, don’t make the mistake of overlooking the value a possible second property offers in terms of unlocking capital for investment in future successes.
Our specialist team is always on hand to answer your queries regarding secured business loans so please do call us on 01444 255915
Sadly, the financial institutions’ overly linear and cautious lending rules are continually restricting business owners from borrowing money for critical expansion, new ideas or resolving business issues, so securing business borrowing against a second property could be just the solution.
Here at Accredo, we encourage brokers to think outside of the box and look at all the avenues available to a business, including secured borrowing. Using a second property is a smart way of trying to secure business borrowing with minimal risk, and it’s a solution to help turn businesses around for the owner and relevant stakeholders.
Our acceptance of second or even third charges on a property mean that even a rental property with a mortgage would be considered. And the individual doesn’t have to be the direct property owner in order to utilise the valuable collateral. We have had instances where a family member has been willing to support investment by agreeing to utilise their second hope to secure a loan.
Like you, we are always ready to look at the options, so let us help you achieve those all-important aspirations for your clients by giving us a call.