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:

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

Key Criteria & Application Guidance

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

www.promisemoney.co.uk

Latest Articles

Whole-of-Market Guidance for Equity Release Second Charges

Securing competitive terms on equity release second charges requires expert underwriting knowledge. In addition, our specialist broker team works directly with over 90 specialist lenders across the UK.

Consequently, reviewing your equity release second charges options with an FCA-authorised specialist credit broker ensures whole-of-market access while avoiding unnecessary fees and delays.

Specialist Underwriting & Whole-of-Market Access

Because specialist lending facilities require bespoke underwriting, comparing lenders across the UK is essential. Explore our complete guide to Secured Loans Desk to understand how different lending criteria apply to your requirements.

Promise Money is an independent credit broker authorised and regulated by the Financial Conduct Authority (FRN 681423). Our experienced team reviews your specific circumstances to secure optimal terms across 90+ UK lenders.