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PRA? Don’t turn BTL business away

Don’t turn BTL business away

If you are wondering how you will deal with portfolio BTL’s after September, Promise can provide you with the information you need to place and sell each case or we can deal with your client direct so you don’t have to get involved.

It’s your choice

PRA – What does it mean?

From 30.9.17 landlords with 4 or more BTL properties (a Portfolio) will be subject to stricter lending rules for new loans.
There will be no change for landlords with less than 4 BTL properties

PRA – How does it affect You?

Lenders will have additional underwriting requirements for your clients who are Portfolio landlords, these requirements will require broker to investigate and consider:

  • More detailed affordability assessment
  • Property portfolio and experience
  • Risk Factors
  • Business Plan

PRA – How can Promise Help?

We will obviously find suitable lenders but we also know what additional information is required and in what format for each lender so can guide and support you through the process so you can be confident of providing the best lender fit for your client.

If you prefer to avoid this extra work we can prepare all the extra information and business plans direct with your client on your behalf.

Look out for our message on 27th September which will include some examples of how to prepare a business plan/stress testing/affordability assessment and the documents your clients may be asked to provide.

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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