Recent meetings held between Promise and AR / DA firms have highlighted that mortgage brokers who have embraced second charges are reporting they are “rushed off their feet” with new enquiries. Those who are yet to get fully on board have not really seen much change since MCD day. However they all have common requirements.
Broker requirement No. 1 – Getting fast accurate indicative comparisons for your compliance file Rather than rely on an adapted mortgage sourcing system, you have free access to the original Loan Brain™ which has been supporting brokers since 2006 with:
60 second comparison reports – cheapest fixed, variable, interest only etc.
Choice of accurate whole of market sourcing, DIP forms, email or telephone quotes.
The system can underwrite arrears, CCJ’s, defaults etc.
Live underwriter interaction.
Broker requirement No. 2 – Having an expert to guide you if seconds are not your strong suit.
Your underwriter can view and manually underwrite your enquiries and source and advise you on possible options.
They can do instant soft credit searches for greater accuracy – no harmful footprint.
They can help with compliance or process queries and take the enquiry forward to offer.
Broker requirement No. 3 – a fast process to quickly move an enquiry to an accurately underwritten offer should a second charge be the preferred route.
Advisers and senior underwriters are one and the same and will liaise efficiently with you or your client.
Referrals – will carry out fact find and full advice.
Packaging – will provide you with everything you need to give advice.
Compliance taken care of behind the scenes to help you at each step.
Good commercial terms, a large panel, regular updates and a professional service for your clients should all be assumed as the norm. For brokers who are nervous of second charges Promise has the people, process and 30 years expertise to help and guide you.
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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