2022 – We’ve got a plan so it doesn’t need to be a bumpy ride!
We’ve got a plan
We hope you have had a wonderful Christmas and New Year. We are now back fully staffed and find ourselves in 2022 – the biggest year yet for the second charge market.
As we all know, the MCD is looming and the 21st March suddenly doesn’t seem as far away and we are all at varying stages of preparedness for this game-changing new regulation, which will mean second charges will fall under the same regime as first charges.
If you are still in a state of limbo as to whether to offer second charges then you really need to decide, fast. Not least because those who don’t choose to advise on seconds will lose the right to call themselves “independent” and “whole of market”. Does anyone want to be in a position to give their customers only half of the answers?
If you have decided and are working towards including second charges in your offering then that’s fantastic. Even if you don’t give advice you can still refer. Here are some proactive steps you can take:
- Incorporate second charges into your sales process. This should be simple and Promise can help.
- Call Promise and use our second charge referral or packaging solution to help clear cases before the March deadline – any cases which are not paid out by the deadline will need to be underwritten again under the new regime.
- Start selling second charges on the advised model as soon as possible if you want to remain independent – this should help with dealing with the pipeline.
- Whether you advise or refer second charge loans, take action quickly to benefit from the flexible criteria we are enjoying – from February it’s only going to get tighter.
Source a loan now or give your BSM a call on 01902 585052.
01902 585052
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 04822774Promise Solutions, Fullard House, Neachells Lane, Wolverhampton, WV11 3QG
Authorised and regulated by the Financial Conduct Authority – Number 681423The Financial Conduct Authority does not regulate some forms of commercial / buy-to-let mortgages
Website www.promisemoney.co.uk