The Mortgage Alliance Club has added second charge products to its offerings through Precise Mortgages.
Club members can now submit cases directly to Precise Mortgages, who will offer second charge products at up to 85 per cent loan-to-value (LTV) available as a two-year tracker or two-year or five-year fixed rate term.
A spokesman for The Mortgage Alliance Club said the product rates, which start from 4.20 per cent, are specifically designed for customers looking to raise capital by releasing equity from existing residential property.
Rob McCoy, senior product and business manager at The Mortgage Alliance, said this latest offering should provide a quicker and more flexible alternative to remortgaging.
He said: “This could be ideal for customers who want to protect their existing mortgage and enjoy a continuation of low mortgage rates.”
“We are confident the expansion of our Precise Mortgages offering will be popular amongst our members, particularly for those clients where remortgaging is not a viable option.”
The Precise Mortgage range available to The Mortgage Alliance Club members also includes residential, buy-to-let and bridging loan products, which the mortgage club said the latest second charge addition will complement.
Alan Cleary, managing director at Precise Mortgages, said: “Second charge loans play a pivotal role in allowing customers more choice when it comes to meeting their borrowing needs.
“We look forward to working with TMA to help embed direct access to our range of second charge loans and further strengthen their specialist lending proposition.”
Jane King, head mortgage adviser at Ash-Ridge Asset Management, thinks the move to second charge products is the start of an ongoing trend for mortgage clubs.
She said: “There is lots of competition on first charges so a lot of lenders are moving to second charge products where the margin is much better. The competition is so tight at the top.”
rachel.addison@ft.com
