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Equity release second charge and new lending options

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:

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

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

If you want access to the largest second charge lender panel available and bespoke underwriting – give us a call on 01902 585052.

www.promisemoney.co.uk

01902 585052

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2 out of 3 borrowers get a lower rate than our representative example of a regulated secured loan below:

Mortgages and Remortgages

Representative example

£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

Representative example

£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.

Unsecured Loans

Representative example

£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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