Just for a change, rather than tell you about the niche products we offer, here are some more straight forward examples of large recent second charge cases. If you get something similar or see a facility which could suit your client, please give me a call.
Interest only loan – but it reverts to capital and repayment after 5 years. Mrs had gone self employed and wanted to reduce the outgoings in the short term but repay the entire loan over the term. This was perfect and very competitively priced
Large debt consolidation loan – it failed affordability for a first mortgage. Our lenders disregard all consolidated credit from the affordability calculation and have an appetite for up to 100% debt consolidation. This is a common issue which we can often accommodate with a second charge allowing you to remortgage in a year or so.
A remortgage would force borrowers to lose their interest only product and could even force them to downsize. A second charge raised the cash they wanted and kept their outgoings low. Our clients could stay in their home until they were ready to downsize in a few years time and pay off the interest only mortgage then.
Borrowers still in probation – remortgage options limited We have a number of lenders which consider probation at rates from 3.65% Also special considerations for contractors and rolling contracts.
New self employed business and we needed to use dividend income from previous businesses to demonstrate affordability. Clients wanted to raise £100K deposit for a BTL but there was a complex mixture of employed and self employed income plus a recent change of business status. The broker couldn’t find a first charge lender willing and able to consider the complexity although the proposition made perfect sense.
Please call us first with your next second charge enquiry. It can be really niche or mildly complex like the ones above. Or I’ll happily accept an easy case just because it makes financial sense for your client.
Please call us on 01902 585052 in the first instance.
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.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.