Email template for your clients – Secured loans adverse credit
Email template for your clients
We have received a number of requests, from brokers, for a version of our adverse credit update which can easily be forwarded to introducers. If you have accountants and estate agents which introduce to you, this could be of particular interest. I know many brokers are getting success from emailing our templates to their client and introducer database. Please feel free to tweak and use the template below.
Subject – do your client’s have difficulty raising finance?
Dear/Hi/Hello I am writing to tell you about a wide range of loan products which can help your clients who may have credit problems and therefore struggle to arrange credit. Of course I can also assist with straightforward loan and mortgage applications, but a number of partners I work with have found the following secured loan summary to be helpful and enlightening. These products all relate to homeowners with poor credit and tend to be of particular interest to the self-employed.
I hope you find the following of interest. If so, please call me if you have any queries. I have categorized different types of credit problems under separate headings to hopefully assist you in identifying products to suit your clients
CCJ’s and Defaults We have lenders which will totally ignore CCJ’s and defaults which are over 2 years old even if they are unsatisfied. Therefore clients could have outstanding adverse credit and still qualify for rates starting at 6.9%. Other lenders look at the size and date of adverse credit. For example CCJ’s and Defaults under £300 can be totally ignored. If less than £3K and satisfied they can also be ignored. Where CCJ’s and Defaults cannot be totally ignored, we have various plans where the rates will rise and LTV’s reduce dependant of the number of adverse points.
Arrears on unsecured credit – credit cards, loans etc. Most lenders will ignore unsecured credit arrears so up to 75% LTV they don’t pose too much of a problem. For very low interest rates, or LTV’s over 75% unsecured arrears can be considered dependant on when they occurred and amounts.
Mortgage arrears Most of our lenders only look at the last 12 months mortgage history so again up to 75% LTV you have a few options. The 85% LTV lenders will look for a good credit rating and potentially 2 years clean mortgage history. However if there are a few small glitches, we can still gain acceptance on a referral basis. We are happy to try for you. If your client still has significant historic arrears outstanding but has paid the last 12 months on time, we have lenders which will consider this as a clean application. If there are high arrears in the last year we still have a number of lenders available depending on the equity and loan amounts needed.
Bankruptcy and IVA We have two lenders which will pay off a bankruptcy up to 65% LTV. One lender will require payments to be made under the bankruptcy for 12 months. The other is less worried and will pay off the bankruptcy or IVA instantly or even prevent it being registered. We can also pay off debt management plans and can look to negotiate reduced settlement figures so £50K of unsecured debt could potentially be settled with a £25K loan.
Unlimited adverse credit For borrowers with very severe credit problems, we have lenders which will look at unlimited adverse credit. Therefore, even if we can’t ignore certain adverse credit as above, there are still lenders to help. As a guide, loans with over 6 month arrears etc are available up to £22K at 65% LTV, £15K at 70% LTV and £10K at 75% LTV. With lower levels of arrears and CCJ’s etc. we can look at higher loan amounts and stretching the LTV’s upwards.
Loans up to 125% LTV Don’t ignore high LTV loans. Whilst the maximum loan amount is £10K and the rates are generally above 30%, we can arrange loans up to 125% LTV and accept mild historic adverse. Remember, if there is an existing second charge at a decent interest rate, these lenders will consider taking a third charge.
I hope this is a useful overview. Whilst I still arrange mortgages and associated products, I am often able to offer greater flexibility with secured loans. If any of my services are of interest to you and your clients, please call me on and I can explain the options further. If not, please keep my details on file for when the need arises.
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.
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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