Promise was fortunate to be one of the first Brokers to offer second charge loans from Masthaven when it launched towards the end of last year. Since then Masthaven has got comfortable with the second charge market, other lenders have repositioned their products and Masthaven is now launching this product revision which in simple terms means more competitive rates and higher LTV’s.
This is good news for brokers and their clients and you will undoubtedly see Masthaven appear more often at the top of the sourcing table. The key points for Masthaven are:
Lower rates than others at higher LTV’s with mild unsecured adverse
Will accept large adverse units over 3 years old which would previously attract much higher rates with other lenders
Self employed applicants can provide bank statements to prove income but without additional 6 X income multiple restriction
Ex council and lower value property considered up to 75% where as others normally cap at 65%
Applications are not scored so can get flexibility in the underwriting
Will also offer interest only on BTL’s from £5000 whereas Blemain start at £25000
Same underwriting rules for employed and self employed. Some lenders apply harsher LTV and Income requirements for self employed
Alongside Shawbrook, Masthaven is also getting more comfortable looking at cases which fall outside criteria. If you have a case which you feel has merit, talk to us about it. Our lenders are willing to look at sensible exceptions if they make sense.
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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