People With Poor Credit History
People With Poor Credit History
For some brokers credit repair is a dirty phrase that conjures up images of unreliable clients with shady credit histories that should be avoided at all cost. Be honest, you’re probably not chomping at the bit to work with homeowners who’ve had major money problems in the past. A lot of the time this is because it seems a fruitless task. Many brokers believe these clients are beyond help. But by ignoring clients seeking credit repair you could be making a big mistake.
It’s news to no one that the past few years have been difficult, financially, for a lot of people. Understandably many people found themselves missing payments or struggling with debt. Some have even been poorly advised to enter debt management plans or IVA’s. These people may now be completely back on the straight and narrow but their credit profile refuses to allow them to move on.
Second charge products are ideal in these situations especially those with low or zero ERC’s. Adverse lenders appreciate that not all customers have perfect credit profiles and as long as they can demonstrate affordability they’ll be accepted. Using a loan to repair their credit and pay off debt management plans can set them up for a future remortgage. Don’t be fooled into thinking there’s nothing that can be done for such clients.
Plus it’s worth noting that many lenders ignore adverse over 12 months so those clients you’re not keen to work with may not actually be considered adverse after all.
Helping a client overcome past difficulties and return to mainstream lending can be hugely rewarding and is likely to guarantee you a client for life. And if there’s ever a time to realise we shouldn’t turn away people we could actually help surely it’s at Christmas?
01902 585052
Promise Money is a broker not a lender. Therefore we offer lenders representing the whole of market for mortgages, secured loans, bridging finance, commercial mortgages and development finance. These loans are secured on property and subject to the borrowers status.
More than 50% of borrowers receive offers better than our representative examples
The %APR rate you will be offered is dependent on your personal circumstances.
Mortgages and Remortgages
Representative example
Borrow £270,000 over 300 months at 7.1% APRC representative at a fixed rate of 4.79% for 60 months at £1,539.39 per month and thereafter 240 instalments of £2050.55 at 8.49% or the lender’s current variable rate at the time. The total charge for credit is £317,807.66 which includes £2,500 advice / processing fees and £125 application fee. Total repayable £587,807.66
Secured / Second Charge Loans
Representative example
Borrow £62,000 over 180 months at 9.9% APRC representative at a fixed rate of 7.85% for 60 months at £622.09 per month and thereafter 120 instalments of £667.54 at 9.49% or the lender’s current variable rate at the time. The total charge for credit is £55,730.20 which includes £2,660 advice / processing fees and £125 application fee. Total repayable £117,730.20
Unsecured Loans
Representative example
Annual Interest Rate (fixed) is 49.7% p.a. with a Representative 49.7% APR, based on borrowing £5,000 and repaying this over 36 monthly repayments. Monthly repayment is £243.57 with a total amount repayable of £8,768.52 which includes the total interest repayable of £3,768.52.
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.
Promise Money is a trading style of Promise Solutions Ltd – Company number 04822774Promise Solutions, Fullard House, Neachells Lane, Wolverhampton, WV11 3QG
Authorised and regulated by the Financial Conduct Authority – Number 681423The Financial Conduct Authority does not regulate some forms of commercial / buy-to-let mortgages
Website www.promisemoney.co.uk