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Capital Raising Secured Loan

25th October 2023

By Steve Walker

New capital raising secured loan product launched today.
Aimed at borrowers who fall just outside many lenders criteria

Here’s a BRAND NEW product which hit the market on 14th April 2021. It’s really handy for brokers and increases opportunities to place second charge cases for borrowers who fall just outside many lenders’ criteria. When it comes to a capital raising secured loan, this lender claims to lead the market.

It may not be a core product for you, but it’s really handy for brokers or introducers. It will increase your opportunities to place cases for capital raising borrowers, who fall just outside many lenders criteria.

This comes from a Prime lender which will now
look at your more challenging capital raising cases.

Highlights of these capital raising second charge loans include:

  • Minimum time Self-Employed 12 months
  • 100% of variable income allowable
  • Day Rate Contractors are now acceptable with a simplified income calculation
  • DMP’s will not need to be cleared as a condition of the Loan
  • Satisfied IVA’s acceptable after 12 months.
  • Rates are offered based on credit score
  • Maximum LTV of 80%
  • Loans from £10,000 – £500,000
  • Variety of credit scenarios accepted subject to score and the following:
    • Any individual CCJ’s or Defaults, with an amount of £10,000 or more must be referred for approval.   
    • If an applicant’s credit performance had been deteriorating over the last 3 months, we need to refer for approval.
    • An explanation must be provided in all instances, confirming why the credit was affected and why it has now stabilised.

Loan purposes considered include:

  • Repay a family member
  • To purchase a share in the freehold
  • To extend the lease of the subject property
  • Inheritance tax
  • Funding the purchase of a residential investment property
  • Income tax repayments
  • School Fees
  • Debt Consolidation
  • Business Purposes
  • Matrimonial settlements
  • Gift to family member 

Maximum age at the end of the term:

  • If using the applicant’s income for affordability – max age is 70
  • If using pensions or if case would pass Lending into retirement rules – max age is 80   

So when a capital raising remortgage doesn’t quite fit the bill
 this might be one of the options to consider


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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 04822774
Promise Solutions, Fullard House, Neachells Lane, Wolverhampton, WV11 3QG

Authorised and regulated by the Financial Conduct Authority – Number 681423
The Financial Conduct Authority does not regulate some forms of commercial / buy-to-let mortgages

Website www.promisemoney.co.uk

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