Secured loans – Not just for problem cases
Not just for problem cases
Last year I ran a series of roadshows for brokers and was surprised by how many still think of secured loans” as a last resort product.
Of course once we started talking about how many of their customers had low base rate trackers, interest only, or were approaching retirement age they started to realise the opportunities they were missing. One broker admitted that, when he can’t recommend a remortgage for reasons such as those above, he puts the client off and files them to be re-contacted in 12 months. He added he had 4 drawers of clients like this and his next job would be to sort through them.
It makes sense to deal with clients needs immediately especially with loan rates below 5%. It can be the right outcome for the client, you earn a good introductory commission and you can still look at a remortgage in 12 months and benefit from the low ERC’s on second charge loans. If you don’t someone else probably will and one broker told me that, only 4 months after arranging a remortgage, his client took out a £50,000 secured loan online without him knowing about it. He didn’t previously tell his clients he can also arrange loans. Having missed out on £1500 commission, now he tells everyone.
If you have a bank of clients who have mortgage deals they don’t want to lose, you could be sitting on a second charge gold mine – and you won’t have to dig too hard to find those nuggets. We can give you quotes in around 60 seconds.
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