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Second charges – seize the day

Second charges

Are your customers buying elsewhere?

For many brokers the answer is yes.

Could this be happening in your business?

For the big financial purchases or restructures customers will often think remortgage and might contact their broker. That’s good news.
But what about smaller transactions? They normally turn to Google for a loan.

That’s a problem

Every loan enquiry your clients make elsewhere is a remortgage enquiry lost and a client talking to your competitor. Why not get them to call you instead? Most secured loan enquiries are made on line so its safe to assume brokers are missing out.

So here is my suggestion.

  1. Tell your clients you can arrange secured loans – add to letters, website, brochures and conversations.
  2. The regulations are the same as first mortgages so it should be easy.
  3. Don’t call them second charge loans. Consumers don’t understand this terminology.
  4. Cherry pick the remortgage cases you can deal with.
  5. Offer the others a Secured Loan – You can refer or give the advice yourself (whichever is easiest or fits your model)

Examples of typical customers:

  • The recently self employed guy who wants a new van
  • The IT contractor who has changed contract and wants to consolidate debt
  • The landlord who wants to raise a £20k deposit for another BTL purchase
  • The shop owner who wants to expand his business
  • Any person who instinctively thinks – “I need a loan for that”.

Result

  • You generate more remortgage enquiries
  • You generate income on the secured loans too
  • Your client retention improves as they come to you first – not Google
  • You cross sell more protection products
  • Secured Loans become a natural part of your business
  • Helps you convert more of your existing business
  • Keeps the regulator happy

We know that many brokers have not yet got to grips with second charge secured loans.
If you are in the same boat please bear in mind the benefits are far more than just converting an occasional decline.

Talk to Promise today on 01902 267444
We are here to support brokers at every stage of their second charge journey.

www.promisemoney.co.uk

01902 585052

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    Notes...

    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.
    Secured / Second Charge Loans secured on land
    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 £117,730.2
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    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 04822774
    Promise Solutions, Fullard House, Neachells Lane, Wolverhampton, WV11 3QG

    Authorised and regulated by the Financial Conduct Authority – Number 681423
    The Financial Conduct Authority does not regulate some forms of commercial / buy-to-let mortgages

    Website www.promisemoney.co.uk