How to spot a big opportunity
How to spot a big opportunity
So far this year we are seeing more large second charge loan enquiries.
Loans from £100k to £200K are more common and we want to help you spot and convert them.
Here are some recent “large loan” scenarios where you or your clients could consider a second charge:
£200,000 Business investment
Client wanted to buy a share of his current company. This would increase his income through dividends and he wanted a lender to use the extra income within the affordability calculation.
£150,000 – Refurbishment – No kitchen or bathroom
This client was considering a bridging loan to bring the property up to mortgageable standards and intended to move in and then refinance with a second charge.
We persuaded a term lender to take on the case which removed the need for a bridging loan and saved unnecessary fees. The clients also got a far lower interest rate and didn’t have the pressure of exiting the bridge.
£97,000 – Full consolidation.
This client had a combination of credit cards and expensive loans which had built up over years.
They could afford to make minimum payments but not much more so the balance was hardly reducing.
A full consolidation loan reduced the outgoings by £1600 per month and started eating in to the balance.
With the ability to overpay the clients were in a position to make further capital reductions when it suited them.
£110,000 – to pay a tax bill
It’s that time of year where you may come across enquiries like this.
These large second charge loans can generate a good income stream now, create a remortgage opportunity in a year or so and remove the risk of your client applying to another broker.
Call us to discuss any potential enquiries on 01902 585052 or if you prefer, you can get indicative online quotes in around 1 minute via your loan portal. (Note: The sourcing system can accurately quote for arrears, CCJ’s etc).
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