Top 3 broker needs for second charges
Top 3 broker needs
Recent meetings held between Promise and AR / DA firms have highlighted that mortgage brokers who have embraced second charges are reporting they are “rushed off their feet” with new enquiries. Those who are yet to get fully on board have not really seen much change since MCD day. However they all have common requirements.
Broker requirement No. 1 – Getting fast accurate indicative comparisons for your compliance file
Rather than rely on an adapted mortgage sourcing system, you have free access to the original Loan Brain™ which has been supporting brokers since 2006 with:
- 60 second comparison reports – cheapest fixed, variable, interest only etc.
- Choice of accurate whole of market sourcing, DIP forms, email or telephone quotes.
- The system can underwrite arrears, CCJ’s, defaults etc.
- Live underwriter interaction.
Broker requirement No. 2 – Having an expert to guide you if seconds are not your strong suit.
- Your underwriter can view and manually underwrite your enquiries and source and advise you on possible options.
- They can do instant soft credit searches for greater accuracy – no harmful footprint.
- They can help with compliance or process queries and take the enquiry forward to offer.
Broker requirement No. 3 – a fast process to quickly move an enquiry to an accurately underwritten offer should a second charge be the preferred route.
- Advisers and senior underwriters are one and the same and will liaise efficiently with you or your client.
- Referrals – will carry out fact find and full advice.
- Packaging – will provide you with everything you need to give advice.
- Compliance taken care of behind the scenes to help you at each step.
Good commercial terms, a large panel, regular updates and a professional service for your clients should all be assumed as the norm.
For brokers who are nervous of second charges Promise has the people, process and 30 years expertise to help and guide you.
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