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BTL loans post PRA

BTL loans post PRA

We are having a bit of a push on Buy to Let loans as we are seeing increasing success from this sector.

If your landlord clients are aware of these products we think you will see more demand – certainly that’s the case for some brokers.

Since the PRA changes last year we have more BTL lenders, lower rates and more flexible criteria.

Before declining a BTL capital raising case please let me have a crack at a second charge.

Headlines include:

  • Projected rental income accepted
  • Non rental income included in affordability assessment
  • No stress test on first and second charge
  • Portfolios – standard affordability calculations – no in depth business plans required
  • Limited company and SPV’s accepted – now at lower rates
  • Low value or non-standard construction
  • High rise ex council / deck access – now lower rates
  • No consent required to a second charge – Many first charge BTL lenders withhold consent
  • Prime or heavy adverse catered for
  • Exclusive – Second charge bridging up to 80% LTV –some adverse accepted and can be used to take out an existing bridge.

Just give me a call to talk through any scenario or send me a DIP form.

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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