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Equity release second charge and new lending options

Equity release second charge and new lending options

One of our most flexible second charge lenders has just reduced its rates by up to 2% and introduced a range of new features.
Maybe add this blog post to your CPD records.

Equity Release Second Charge
Promise approached this lender many months ago to request and help design a second charge loan to rank behind an equity release mortgage.
This product is now available and is aimed at borrowers who are tied in to an equity release mortgage but have affordability for additional borrowing subject to:

  • At the time the loan is advanced the maximum LTV of the Equity Release Mortgage is 40%.
  • The additional loan is limited to 55% LTV (based on the net loan amount).
  • Maximum second charge loan is limited to £50,000.
  • Maximum loan term of 120 months.
  • Maximum rate on the first charge must not exceed 8% and must be fixed for the term of the proposed second charge loan.

The lender doesn’t require consent from the first mortgagee but borrowers should check any impact or breach of the first mortgage terms.
Rates on this product start at 8.9% and a mix of arrears, defaults and CCJ’s can be accommodated.

Other products – from 6.9%

This lender is ideal for finding a home for complex cases due to its ability to cater for many unusual scenarios as follows:

  • Max LTV 95% (Scotland 85%)
  • Range of arrears, defaults and CCJ’s considered up to 90% LTV
  • “Non Reg” Bridging up to 80% LTV – including taking out a failed bridge
  • First mortgagee won’t consent to a second charge
  • Non standard constructions and lower value property
  • Flats above commercial property
  • Residential or BTL up 85% – personally owned only
  • Zero hours contracts, fostering income, benefits and maintenance with / without a court order if proved to be consistent.
  • In probation / only 3 months in job
  • Debt management plans – don’t need to be settled if in clients interests

If you want access to the largest second charge lender panel available and bespoke underwriting – give us a call on 01902 585052.

www.promisemoney.co.uk

01902 585052

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    Notes...

    More than 50% of borrowers receive offers better than our representative examples. The %APR rate you will be offered is dependent on your personal circumstances.
    Mortgages and Remortgages secured on land
    Borrow £270,000 over 300 months at 7.1% APRC representative at a fixed rate of 4.79% for 60 months at £1,539.39 per month and thereafter 240 instalments of £2050.55 at 8.49% or the lender’s current variable rate at the time. The total charge for credit is £317807.66 which includes £2,500 advice / processing fees and £125 application fee. Total repayable £587,807.66
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    Promise Money is a broker not a lender. Therefore we offer lenders representing the whole of market for mortgages, secured loans, bridging finance, commercial mortgages and development finance. These loans are secured on property and subject to the borrowers status.

    More than 50% of borrowers receive offers better than our representative examples

    The %APR rate you will be offered is dependent on your personal circumstances.

    Mortgages and Remortgages

    Representative example

    Borrow £270,000 over 300 months at 7.1% APRC representative at a fixed rate of 4.79% for 60 months at £1,539.39 per month and thereafter 240 instalments of £2050.55 at 8.49% or the lender’s current variable rate at the time. The total charge for credit is £317,807.66 which includes £2,500 advice / processing fees and £125 application fee. Total repayable £587,807.66

    Secured / Second Charge Loans

    Representative example

    Borrow £62,000 over 180 months at 9.9% APRC representative at a fixed rate of 7.85% for 60 months at £622.09 per month and thereafter 120 instalments of £667.54 at 9.49% or the lender’s current variable rate at the time. The total charge for credit is £55,730.20 which includes £2,660 advice / processing fees and £125 application fee. Total repayable £117,730.20

    Unsecured Loans

    Representative example

    Annual Interest Rate (fixed) is 49.7% p.a. with a Representative 49.7% APR, based on borrowing £5,000 and repaying this over 36 monthly repayments. Monthly repayment is £243.57 with a total amount repayable of £8,768.52 which includes the total interest repayable of £3,768.52.

    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.

    Promise Money is a trading style of Promise Solutions Ltd – Company number 04822774
    Promise Solutions, Fullard House, Neachells Lane, Wolverhampton, WV11 3QG

    Authorised and regulated by the Financial Conduct Authority – Number 681423
    The Financial Conduct Authority does not regulate some forms of commercial / buy-to-let mortgages

    Website www.promisemoney.co.uk