Not only have we just completed Nemo’s largest ever loan, but we have had numerous completions with Shawbrook over £100,000 and this month also paid out a £250,000 loan with Blemain.
The industry has been waiting for more lenders to offer improved terms on larger loans and both Nemo and Shawbrook have made a huge difference with their recent criteria enhancements. This particular Nemo case was from high quality applicants but could not be placed previously. We liaised with the broker regularly as new products were announced and the new Nemo product provided a perfect solution allowing the borrowers to consolidate an existing secured loan of £90,000 plus £100,000 worth of unsecured debt and reduce their monthly outgoings by £1280 per month.
With the emergence of the lower rates and larger loan amounts from Nemo and Shawbrook, many more brokers are now looking at secured loans as a competitive alternative to a remortgage especially as both lenders will lend up to 6 X income multiples. Blemain, of course, will lend to even higher multiples.
If you are considering a remortgage, have a word with the team at Promise about the alternatives via a secured loan. Compared to a remortgage you may be pleasantly surprised by the overall costs and the commissions.
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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