Solving the generational divide
Solving the generational divide
At present the mortgage market stands at something of a generational divide and it’s one that could have considerable implications for the second charge market.
Those brokers who have been around for some time have the experience and knowledge that new starters can only aspire to have. However, old habits die hard and when you’ve operated in the same marketplace for years you’re bound to have developed your own way of doing things so to be expected to suddenly change can be a challenge. Looking at secured loans differently is an example of this.
Then we have the new blood coming into the market who are open to learning and are easier to influence. One would think, therefore, that offering seconds to clients in the same way they would offer a first would present no problem.
However, there remains one big problem here and that is the CeMAP.
Other than a cursory nod to explain that a second may exist, the current mortgage adviser qualification contains very little information or instruction on properly comparing second charges with their first charge cousins.
There is no real detail about the scope of second charges, the type of clients they would benefit and their uses.
And this presents an issue, especially when the colleague a new adviser might turn to for advice is from a generation with its own prejudices and has not embraced second charges themselves.
Many brokers are starting to appreciate how useful it is to be able to offer clients greater choice but there is huge potential and opportunity for the new brokers entering the market if we can get these brokers to fully understand and embrace the seconds market. But we need to see this reflected in the qualifications and training these new advisers are expected to take.
Just last month a number of specialists in the industry renewed their calls for a dedicated bridging qualification to be introduced but perhaps what we really need is a re-evaluation of the current CeMAP qualification to ensure it reflects the entire market we’re currently operating in. Ask a new mortgage adviser and you can be virtually certain they feel much of CeMAP is not relevant to their role. Clients have a range of mortgage needs that can be met through blended solutions and a variety of products. We need the training brokers receive to reflect that and to bring specialist finance into the mainstream fold.
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