Equifinance, the specialist secured loan lender, has relaxed its criteria most notably to accept applications at 80% LTV with missed mortgage payments in the last year. This niche product is one brokers should be aware of, particularly as there is a perception by many that over 75% LTV all second charge applications need to be squeaky clean.
Whilst some lenders will disregard all adverse credit over 12 months old, even at 85% LTV, the latest update from Equifinance goes further and fills the gap for those borrowers with more recent adverse who also need a higher LTV. This is not a product for all but with low ERC’s it can provide the finance required right now with a view to refinancing when circumstances improve.
The key points are:
80% LTV – must have paid 5 of the last 6 mortgage / secured payments – maximum loan £15000
75% LTV – must have paid 4 of the last 6 mortgage / secured payments – maximum loan £30000
Ex council houses, flats and maisonettes accepted – max 5 storeys
Recently self employed accepted
Unlimited CCJ’s or defaults
Rate – 19.2%
Equifinance’s other recent changes include accepting single applications from co habiting couples, increasing repayment terms to 300 months and accepting second charge behind Preferred Mortgages.
Details are available from Promise Solutions on 01902 585052 and instant comparison quotes are available at www.promisesolutions.co.uk
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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