Precise add new five year fixed secured loan product
New five year fixed secured loan
This morning Precise Mortgages has enhanced its secured loans offering with the addition of a 5 year fixed rate deal and enhancements to the “large loan” products.
Secured loans are now commonly used for larger advances, particularly where borrowers can’t, or don’t want to change their beneficial tracker, fixed or interest only mortgage. To support this growing appetite from brokers, on second charge loans from £150,000 to £500,000, Precise Mortgages has reduced the lender fees to £495. Loans up to £2 million will be considered so contacting your clients who are trapped in their existing mortgage should be a worthwhile exercise.
In addition to the tracker, two year and three year fixed rates available, Precise Mortgages has also introduced a secured loan five year fixed deal. The five year fix starts at 6.7% which is 1.75% above the tracker rate. For comparison purposes the tracker starts at 4.95%, two year fixed at 5.7% and the three year fixed starts at 5.95%. For the cautious borrower the three and five year fixed deals look pretty attractive.
Don’t forget to let your “mortgage prisoner clients” know they can keep their mortgage and raise capital another way.
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.
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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