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100% LTV and 3rd charges with adverse

100% LTV and 3rd charges

This has just come in. Please take a moment to read this.
These new products will suit some of your clients – if you can get your head around them.
Available in England, Scotland and Wales – See what you think.

3rd charge – up to 100% LTV

Imagine your client who has a decent first and second charge rate – they want to raise more cash but their circumstances mean that refinancing would be at a higher rate. Instead they could keep the existing first and second charge and take a third charge. Whilst the third charge is more expensive, the overall blended cost could be far lower.
Note: These cases do not need to be clean:

  • 5 months current arrears – max 2 months in last 12 and must have paid the last 3
  • Maximum of 2 payday loans in last 12 months
  • No missed unsecured in last 6 months but can have a maximum of 3 months down in the last 12 months
  • 70% LTV – rates from 12.8% up to £50,000
  • 75% LTV – rates from 13.8% up to £50,000
  • 100% LTV – rates from 17.5% up to £35,000

100% LTV second charge loans up to £35,000 at 11%

This could suit your higher LTV client where a remortgage might hike up the overall rate or you just don’t have the equity to remortgage.
This product is also great for clients who would fail credit score for an unsecured loan but they don’t want to pay the higher rates of guarantor / payday loans. For this rate of 11% the credit profile needs to be good but not spotless.

  • No credit scoring (ideal for unsecured turn downs)
  • No mortgage arrears in the last 12. (1 accepted in the last 24)
  • No defaults or CCJ’s in the last 12
  • Max arrears on any item of unsecured credit is 1 in the last 12 months (2 in last 12 to 24 months)
  • No pay day loans or debt management plans.

First mortgagee won’t consent to a second charge

  • Up to 100% LTV available for clean cases – 11% up to £35000
  • Cases with some adverse from 70% to 100% LTV
    • 5 months current arrears – max 2 months in last 12 and must have paid the last 3
    • Maximum of 2 payday loans in last 12 months
    • No missed unsecured in last 6 months but can have a maximum of 3 months down in the last 12 months
    • 70% LTV – rates from 12.8% up to £50,000
    • 75% LTV – rates from 13.8% up to £50,000
    • 100% LTV – rates from 17.5% up to £35,000

Please note the 100% LTV plan with higher levels of adverse is available on both a second or third charge.

These products are niche and not the lowest rates you will see. But as part of an overall solution for your clients, they could often be more cost effective.

If you are short on LTV or lacking consent just give us a call on 01902 585052.

www.promisemoney.co.uk

01902 585052

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2 out of 3 borrowers get a lower rate than our representative example of a regulated secured loan below:

Mortgages and Remortgages

Representative example

£80,000 over 240 months at an APRC OF 4.3% and a discounted variable annual interest rate for two years of 2.12% at £408.99 per month followed by 36 payments of £475.59 and 180 payments of £509.44. The total charge for credit is £39,873 which includes a £995 broker / processing fee and £125 application fee. Total repayable £119,873.

Secured / Second Charge Loans

Representative example

£63,000 over 228 months at an APRC OF 6.1% and an annual interest rate of 5.39% (Fixed for five years – variable thereafter) would be £463.09 per month, total charge for credit is £42,584.52 which includes a £2,690 broker / processing fee. Total repayable £105,584.52.

Unsecured Loans

Representative example

£4,000 over 36 months at an APR OF 49.9% (fixed) and an annual interest rate of 49.9% would be £216.21, total charge for credit is £3,783.56. Total repayable £7,783.56.


THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME

REPAYING YOUR DEBTS OVER A LONGER PERIOD CAN REDUCE YOUR PAYMENTS BUT COULD INCREASE THE TOTAL INTEREST YOU PAY. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.


If you have been introduced to Promise Money by a third party / affiliate, Promise may pay them a share of any fees or commission it earns. Written terms available on request. Loans are subject to affordability status and available to UK residents aged 18 or over. Promise Money is a trading style of Promise Solutions Ltd. Promise Solutions is a broker offering products which represent the whole of the specialist second mortgage market and is authorised and regulated by the Financial Conduct Authority – Number 681423.

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