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How to deal with complex cases
How to deal with complex cases
While I am sure it is every brokers dream to deal with only straightforward, prime clients with straightforward, prime requirements most of us have been in this industry long enough to know that isn’t the case. Financial requirements can be complex and most of the time a one-size-fits-all, single product approach is just not suitable.
So what do you do? Some brokers will have gotten used to turning clients away if they can’t address a clients’ needs with the products at their disposal and while this is sometimes unavoidable it does mean losing business that does not always need to be lost.
If you are willing to think outside the box and take a more flexible approach with your clients you may find you are able to satisfy their needs after all.
In the secured loans world flexibility has always been a key focus. With seconds becoming fully part of the FCA’s regime from March next year, this approach should become more familiar for mortgage brokers.
When being flexible and thinking outside the box you’ll often find that the best way to service a client is to use a blended approach, combining products in order to come up with the best solution for the client.
Using a combination of first charges and second charges, as well as commercial loans and bridging, you should be able to solve even the most complex problems.
The best way to do this is to ensure the firm you partner up with has multiple product lines and a whole range of solutions. Such a firm will be able to help you to put together the right package for your client and, if you prefer, take over the entire matter to explore a range of solutions.
Take a holistic view with your clients and you’ll find they are easier to service and business need not be lost.
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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.