How brokers use seconds – Affordability
How brokers use seconds
My second charge case studies this week focus on affordability.
Take a look – they may help you spot a potential case which otherwise might be dying.
Income multiples ignored – no LTI caps
The second charge income and affordability assessments can support far larger advances when capital raising.
If income multiples don’t fit for a remortgage please ask me to check our second charge lenders.
Recent job changes – probation isn’t a problem.
Some second charge lenders tend to take a more relaxed view, especially if the previous job was in the same sector.
Contract workers – even with some arrears and CCJ’s
If it’s a short term / recent contract, how long have they worked in that sector?
If the stability is there, even if there are other problems in the background, please speak to me.
Recently self employed – less than 12 months
Whilst Shawbrook has withdrawn its 6 months self employed product there are still lenders available.
Some will work on an accountants projection from the first 6 months with low ERC’s so you can refinance.
Poor credit is also accepted so not the cheapest but a potential option for a few years until they can return to mainstream borrowing.
If you have a case where you think the loan is affordable but a lenders policy decision stops you getting a mortgage, please give me a quick call.
I may have a second charge option which your client finds suitable – a loan via you has got to be better than them going to a competitor via Google.
If there are other problems (credit history, property construction, etc) please still give me a try – our lenders are great at solving multiple problems.
01902 585052
Promise Money is a broker not a lender. Therefore we offer lenders representing the whole of market for mortgages, secured loans, bridging finance, commercial mortgages and development finance. These loans are secured on property and subject to the borrowers status.
More than 50% of borrowers receive offers better than our representative examples
The %APR rate you will be offered is dependent on your personal circumstances.
Mortgages and Remortgages
Representative example
Borrow £270,000 over 300 months at 7.1% APRC representative at a fixed rate of 4.79% for 60 months at £1,539.39 per month and thereafter 240 instalments of £2050.55 at 8.49% or the lender’s current variable rate at the time. The total charge for credit is £317,807.66 which includes £2,500 advice / processing fees and £125 application fee. Total repayable £587,807.66
Secured / Second Charge Loans
Representative example
Borrow £62,000 over 180 months at 9.9% APRC representative at a fixed rate of 7.85% for 60 months at £622.09 per month and thereafter 120 instalments of £667.54 at 9.49% or the lender’s current variable rate at the time. The total charge for credit is £55,730.20 which includes £2,660 advice / processing fees and £125 application fee. Total repayable £117,730.20
Unsecured Loans
Representative example
Annual Interest Rate (fixed) is 49.7% p.a. with a Representative 49.7% APR, based on borrowing £5,000 and repaying this over 36 monthly repayments. Monthly repayment is £243.57 with a total amount repayable of £8,768.52 which includes the total interest repayable of £3,768.52.
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.
Promise Money is a trading style of Promise Solutions Ltd – Company number 04822774Promise Solutions, Fullard House, Neachells Lane, Wolverhampton, WV11 3QG
Authorised and regulated by the Financial Conduct Authority – Number 681423The Financial Conduct Authority does not regulate some forms of commercial / buy-to-let mortgages
Website www.promisemoney.co.uk