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Capital Raising Secured Loan

28th June 2022

By Steve Walker

New capital raising secured loan product launched today.
Aimed at borrowers who fall just outside many lenders criteria

Here’s a BRAND NEW product which hit the market on 14th April 2021. It’s really handy for brokers and increases opportunities to place second charge cases for borrowers who fall just outside many lenders’ criteria. When it comes to a capital raising secured loan, this lender claims to lead the market.

It may not be a core product for you, but it’s really handy for brokers or introducers. It will increase your opportunities to place cases for capital raising borrowers, who fall just outside many lenders criteria.

This comes from a Prime lender which will now
look at your more challenging capital raising cases.

Highlights of these capital raising second charge loans include:

  • Minimum time Self-Employed 12 months
  • 100% of variable income allowable
  • Day Rate Contractors are now acceptable with a simplified income calculation
  • DMP’s will not need to be cleared as a condition of the Loan
  • Satisfied IVA’s acceptable after 12 months.
  • Rates are offered based on credit score
  • Maximum LTV of 80%
  • Loans from £10,000 – £500,000
  • Variety of credit scenarios accepted subject to score and the following:
    • Any individual CCJ’s or Defaults, with an amount of £10,000 or more must be referred for approval.   
    • If an applicant’s credit performance had been deteriorating over the last 3 months, we need to refer for approval.
    • An explanation must be provided in all instances, confirming why the credit was affected and why it has now stabilised.

Loan purposes considered include:

  • Repay a family member
  • To purchase a share in the freehold
  • To extend the lease of the subject property
  • Inheritance tax
  • Funding the purchase of a residential investment property
  • Income tax repayments
  • School Fees
  • Debt Consolidation
  • Business Purposes
  • Matrimonial settlements
  • Gift to family member 

Maximum age at the end of the term:

  • If using the applicant’s income for affordability – max age is 70
  • If using pensions or if case would pass Lending into retirement rules – max age is 80   

So when a capital raising remortgage doesn’t quite fit the bill
 this might be one of the options to consider

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