Brokers tap into doubled commissions with large secured loans

Tap into doubled commissions

Having just completed a £250,000 loan with Blemain, Nemo’s largest ever loan at £196,000 and numerous Shawbrook loans well over £100,000 it is clear that the secured loan market is proving more popular for clients raising large sums.

Brokers love it too – the same amount of work and double the income – why wouldn’t you? The spate of new low rate, high value products has created a lucrative opportunity for mortgage brokers, especially those who can identify suitable clients from within their database.

So who should they look for? The couple on a tracker? The guy with high ERC’s? The high flyers who have run up a load of credit and can’t get a mortgage due to tight affordability criteria?

It is all of these and much more. We are writing commission cheques for between £2500 and £3500 on a regular basis so there is every incentive for brokers to look for these top end loans.

Many borrowers are preconditioned (by negativity in the media) in to thinking they can’t borrow. If brokers have not emailed their clients to tell them about the extraordinary flexibility in the secured loan market, then surely it makes sense to do so.

As a reminder of the chunkier loans available, please see below. There is even more choice for loans below £100,000 – adverse credit catered for

Nemo

• Up to £200,000 at rates from 5.592% up to 55% LTV (7.008% up to 70% LTV)
• Higher LTV’s available up to 90% but lower loan amounts and income multiples up to 6 X
• USP’s
  • No Lender fees
  • Lowest rate in the market

Shawbrook

• Rates start at 6.9% at 65%LTV – will consider up to £500,000 rates and LTV vary dependant on loan amount.
• Higher LTV’s available up to 85% but lower loan amounts
• Income multiples up to 6 X
• USP’s
  • Will lend to self employed with bank statements to prove income
  • No ERC’s
  • Max age 80

Blemain

• Loans up to £250,000 (more on referral) LTV’s are lower than above with loans above 50K up to 70% LTV
• More adverse accommodated which impacts on LTV
• Income calculated on affordability so an equivalent to 10X is not unusual
• USP’s
  • Will lend for business purposes
  • Will accept more adverse than Shawbrook or Nemo
  • Interest only available and max age 80
  • More generous income calculation
  • 2nd charge available on BTL up to 65% – recent poor credit accepted

Step One

• Loans up to £100,000 available on referral and LTV’s available up to 85%
• Rates start at 8.9% and on other plans will consider small levels of adverse at high LTVs which would fail other High LTV plans
• Income based on affordability (10X) so will accept cases which fail income on Shawbrook and Nemo but cheaper and higher LTV’s than Blemain
• USP’s
  • Will lend for business purposes with standard CCA redemptions (2 months interest approx)
  • More generous income calculation
  • Will accommodate larger loans and light adverse at higher LTV’s
  • Happier to accept lower value / ex council properties at higher LTV’s
  • 2nd charge available on BTL’s up to 70%

Non status secured business loans

• Heavy adverse considered – loans up to £250K
• Affordability can be based on clients projected income – don’t need accounts
• Can take a first, second or third charge on residential or commercial property
• Repayment periods up to 10 years
• Repaying arrears or bank debt no problem

The lenders are looking for larger loans and are considering cases outside criteria on a regular basis.
If you have a possible case, it’s definitely worth a chat with the team on 01902 585015

www.promisemoney.co.uk

01902 585052