High LTV secured loan for borrowers with past arrears or poor credit
High LTV secured loan
NEW Secured Lender – High LTV – poor or bad credit accepted – rates from 8.9% – LTV’s up to 85%
We have been promising to bring a new lender to the market to pick up the high LTV declines of Nemo and Shawbrook. Well it looks as if we may have two lenders shortly but here are some details of the first one.
Place more loans – including previous turn downs
This lender is operating in an area of the market where there were previously no options so now we can simply place loans which would otherwise have been declined. It is therefore well worth reviewing your recently declined cases.
Also please note this is not just a high LTV lender. There are many other areas where this lender offers terms not available elsewhere.
Loans are available up to £50,000 with rates from 8.9%
Certain CCJ’s/ defaults and unsecured arrears ignored up to 85% LTV
A mortgage arrear over 6 months ago or CCJ/default over 12 months considered up to 80% LTV – no other lender does this at sensible rates / loan amounts
Will lend on BTL’s to 70% LTV with normal CCA redemptions – other lenders 65% max with higher redemptions
Affordability calculation is solely based on income and expenditure – only Blemain previously worked this way – Rates with new lender start at 8.9% so 2% cheaper
No cap on LTV for Ex Council houses and minimum valuation £75,000. As a comparison, we can now offer 85% on a low value council house where as most other lenders would lend at 60% to 75%
Loans are available for property purchase or business purposes – also with normal CCA redemptions – most lenders wont accept this – certainly not at such competitive rates/LTV’s
A sensible and bespoke approach to applications failing a little outside criteria
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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