Second Charge Loans
![](https://www.promisemoney.co.uk/wp-content/uploads/2019/11/Posts-Featured-Images_0013_iStock-995972288-1024x536.jpg)
Second Charge Loans
Promise was fortunate to be one of the first Brokers to offer second charge loans from Masthaven when it launched towards the end of last year. Since then Masthaven has got comfortable with the second charge market, other lenders have repositioned their products and Masthaven is now launching this product revision which in simple terms means more competitive rates and higher LTV’s.
This is good news for brokers and their clients and you will undoubtedly see Masthaven appear more often at the top of the sourcing table. The key points for Masthaven are:
- Lower rates than others at higher LTV’s with mild unsecured adverse
- Will accept large adverse units over 3 years old which would previously attract much higher rates with other lenders
- Self employed applicants can provide bank statements to prove income but without additional 6 X income multiple restriction
- Ex council and lower value property considered up to 75% where as others normally cap at 65%
- Applications are not scored so can get flexibility in the underwriting
- Second charge BTL loans available to 70% LTV – others max out at 65%
- Will also offer interest only on BTL’s from £5000 whereas Blemain start at £25000
- Same underwriting rules for employed and self employed. Some lenders apply harsher LTV and Income requirements for self employed
IMPORTANT
Alongside Shawbrook, Masthaven is also getting more comfortable looking at cases which fall outside criteria. If you have a case which you feel has merit, talk to us about it. Our lenders are willing to look at sensible exceptions if they make sense.
Call the team on 01902 585052 or source online at www.promisesolutions.co.uk
For loans and other products, please call 01902 585052 or visit www.promisesolutions.co.uk
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