If you are going on holiday soon, do you have any second charge cases you want me to look at for you now?
Ideally, if we can get the leg work done now, we can progress everything whilst you are away.
There’s nothing particularly new on the second charge front. However it’s worth bearing the following recent changes in mind:
Second charge HMO rates dropped to 6.29%
New 95% LTV product – rates from 8%
100% LTV available from 11% and will accept light adverse in last 12 months
BTL – new products
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
No consent required to a second charge – Many first charge BTL lenders withhold consent
Prime or heavy adverse catered for
Second charge bridging up to 80% LTV – some adverse accepted and can be used to take out an existing bridge.
Property now accepted
Flats over take away’s and mixed commercial
High rise ex council / deck access – now lower rates
As we constantly remind everyone, we have the largest panel of second charge lenders so please make us your first port of call when looking for a secured loan for your client – call 01902 585020 today.
2 out of 3 borrowers get a lower rate than our representative example of a regulated secured loan below:
Mortgages and Remortgages
£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
£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.
£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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