PRA? Don’t turn BTL business away
Don’t turn BTL business away
If you are wondering how you will deal with portfolio BTL’s after September, Promise can provide you with the information you need to place and sell each case or we can deal with your client direct so you don’t have to get involved.
It’s your choice
PRA – What does it mean?
From 30.9.17 landlords with 4 or more BTL properties (a Portfolio) will be subject to stricter lending rules for new loans.
There will be no change for landlords with less than 4 BTL properties
PRA – How does it affect You?
Lenders will have additional underwriting requirements for your clients who are Portfolio landlords, these requirements will require broker to investigate and consider:
- More detailed affordability assessment
- Property portfolio and experience
- Risk Factors
- Business Plan
PRA – How can Promise Help?
We will obviously find suitable lenders but we also know what additional information is required and in what format for each lender so can guide and support you through the process so you can be confident of providing the best lender fit for your client.
If you prefer to avoid this extra work we can prepare all the extra information and business plans direct with your client on your behalf.
Look out for our message on 27th September which will include some examples of how to prepare a business plan/stress testing/affordability assessment and the documents your clients may be asked to provide.
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. We may receive commissions that will vary depending on the lender, product, or other permissable factors. The nature of any commission will be confirmed to you before you proceed.
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