Why wouldn’t you?
Wouldn’t you?
If I told you you could increase your income by doing something almost identical to what you’re doing now, that wouldn’t increase your hours and wouldn’t mean missing out on the type of work you currently do but, rather, would complement it. What would you say? My guess is unless you willingly want to sabotage your own business you’d say yes. Well, why wouldn’t you? There are no downsides to it, only benefits.
Yet if I told you this additional work was second charge loans bizarrely I think there would be some brokers who might become somewhat reticent. But why?
All the figures are telling us mortgage brokers have yet to embrace second charges as fully as they could. The market is growing but given the potential that exists if mortgage brokers add seconds to their offering it’s clear we’re nowhere near at that point. And I must admit I’m finding it puzzling.
Clients who are seeking remortgages could well be better off with a second mortgage. And vice versa. It only makes sense to offer the two.
One of the most common arguments I hear from brokers who don’t offer seconds is “It’s very rare that I have a case that warrants a second.” Well, fair enough but if you’re able to offer them then when those once in a blue moon cases come around you’re ready and waiting. Plus, as the old adage goes, you’ll never find it if you’re not looking. Opportunities are all around us, from the self-employed client who is struggling with mainstream lenders to the contract worker who can no longer meet high street criteria. Once you engage with seconds fully you’ll notice them more. And once word gets out you offer them clients will know where to come.
If you’re avoiding them because you don’t feel like you understand them enough, put that right. There are plenty of opportunities to educate yourself on seconds from events up and down the country to simply calling up a packager contact and asking your questions.
Unless your biggest problem right now is having so much cash your wallet won’t shut properly, It doesn’t make sense to opt out of something that brings money to your door, particularly not when opting in can improve your business offering and benefit your clients.
What are you waiting for?
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