New sub prime secured lender accepting poor credit & minimal equity
New sub prime secured lender
Promise has added a new lender to its panel which increases the number of secured lenders on the Promise sourcing platform to 19.
This is double the number of lenders offered by most loan sourcing portals and certainly more than any other secured loans packager.The new lender, TFS Secured Loans, provides loans to adverse borrowers with recent credit problems, especially those who need finance without resorting to Payday lenders. Loans are available even when the first mortgagee won’t consent to a second charge and there is no automatic requirement to pay off outstanding mortgage arrears from the proceeds of the loan if the borrower has an arrangement to pay. Provided there are no mortgage arrears, defaults or CCJ’s registered in the 6 months TFS will lend £20,000 up to 75% LTV and up to 65% LTV if the adverse credit is more recent.
Second charges are also available on BTL’s and flats above commercial property plus, unusually, behind virtually any first mortgagee including subprime lenders which others avoid. All loans are available in England, Scotland and Wales. As well as an alternative to Payday loans, these secured loans can also be used for debt consolidation, home improvements or as short term finance to overcome a particular problem.
Whilst the new TFS product is not as mainstream as the likes of Shawbrook and Nemo, we know that 1000’s of borrowers are being drawn towards Payday lenders through lack of choice and knowledge of what is available. By considering and promoting the specialist lenders such as TFS, Equifinance, Evolution, 1st Stop and others we believe brokers can attract and better serve prospective borrowers now, whilst building up their client bank for the future.
We have been calling brokers lately to gauge their view of the secured market and many still ignore secured loans as an income stream and means of attracting more remortgage customers. Some still throw away expensive leads if they don’t convert to a remortgages. I think today’s secured loan customer is tomorrows remortgage so make hay whilst the sun shines.
If you want to get more from loans but are simply to busy to give it any focus, please speak to the team about how we can generate loan income for you without breaking a sweat.
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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