West One has long been a key player in the bridging market and one which is popular with brokers and clients alike so its decision to enter the second charge sector earlier this year was widely welcomed. It has the scale to be a serious contender and is undoubtedly led by an experienced team.
Interestingly then, when the lender made its move into the market some experienced second charge brokers may well have been surprised at its offering. On first glance at the criteria it was difficult to see where it stood out. The second’s market is a competitive arena at present. Rates have fallen considerably over the last few years so lenders are now having to compete in other areas.
However, as soon as a broker begins the advice and underwriting process it soon becomes clear that the lender does have a USP. Indeed, there are many little areas and niches in which it comes out on top. Having already completed several deals with West One we are finding it is very often the most suitable option.
A lot of credit must go to the West One team and the woman at the helm of the department, for not simply competing on rate but for finding gaps in the market which other lenders were not satisfying. Marie Grundy, a familiar face in the second’s market following her time at V Loans, knows how brokers think. I always tell my staff to be solution orientated ; thinking ‘what are the scenarios which would make this case work’ as opposed to ‘this is why this case can’t work’ and it seems to me Grundy works along the same lines. She and her team have created a solution orientated offering at West One and this is a huge positive for the market which will lead to additional lending and serve more customers, rather than focussing mainly on rates.
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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