How a high LTV lender could help you
How a high LTV lender could help
If capital raising with a high LTV remortgage is tricky, see how high LTV second charges might help people now – maybe with home improvements or credit repair – and set them up for a remortgage further down the road.
High LTV to 100%
There are 3 main 100% product ranges based on credit profile. Prime, Near Prime & and adverse. They are amazingly accommodating as follows:
- No Income multiples & DTI caps – 100% LTV
Affordability on these products is purely based on income and expenditure allowing cases failing affordability models elsewhere to placed.
- Recent adverse credit within 6/12 months – 100% LTV
When customers experience a life event which affects their credit profile, they often turn to their mortgage broker when it’s too late. Whilst many 2nd charge lender ignore adverse after 12 months we can other a High LTV solution now if they can’t wait.
- The recently self employed – 100% LTV
Lending to professionals who have recently gone from employed to self employed in the same profession with no gaps. Examples of professionals would be: IT professionals, Project managers, Doctors, Accountants, IFA/Mortgage broker, Business consultants, Gas Engineer and Tradesmen. The credit profile is a key factor in agreeing to lend here but it needn’t be perfect either.
- Heavy Mortgage Arrears – 100% LTV
Many mortgage brokers react negatively to customers with heavy mortgage arrears because they believe there are no re-mortgage options. This lender will accept heavy mortgage arrears if the customer is on the road to recovery with at least the last 2 payments being made and can clear historical arrears and capital raise, acting as a stepping stone for the customer to re-mortgage sooner with an improved credit profile.
- No Mortgage valuation Required – AVM’S accepted up to 100% reduces packaging time and costs.
- No First Mortgagee Consent – High LTV loans are still available even if consent is withheld due to mortgage arrears – reduces packaging time and uncertainty.
- Other – Multiple pay day loans to 100% LTV, non standard construction and flats above commercial to 80% LTV, available England, Wales and Scotland.
Whilst rates start at 10% (12% for 100% LTV), we can avoid a valuation it brings the overall cost down and makes good sense for a short term deal which you can remortgage in a year or so.
01902 585052
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 04822774Promise Solutions, Fullard House, Neachells Lane, Wolverhampton, WV11 3QG
Authorised and regulated by the Financial Conduct Authority – Number 681423The Financial Conduct Authority does not regulate some forms of commercial / buy-to-let mortgages
Website www.promisemoney.co.uk