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Covid Chaos

 

Covid Chaos - Are you ready

 

 

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Covid chaos.

In these unprecedented times, engaging with an experienced Authorized and Regulated Independent finance broker has never been more important. My 27 years of finance experience will often be the difference between a potentially successful outcome, or as I have often seen, failure and disappointment when a customer opts to directly use an online application with a Company of which they know nothing about.

Over the last couple of weeks, we have seen Covid chaos, with many lenders stopping lending altogether, often a combination of volumes of existing customers seeking payment holidays causing internal cashflow issues, plus their own funding lines of credit having more stringent covenants imposed. Others have seen their funding dry-up as private investors withdraw their support, or, the threat of not being able to enable Securitization.

All is not lost, however – there are still many positives in the Personal, Business and Buy-To-Let finance market, with the caveat that if you think you want it, then ask now, whilst terms remain favourable.

So, just what is available during this Covid chaos?

 

First Charge Mortgages:First Charge
Estate Agents – Closed.
Surveyors and Valuers – Pretty much closed.
Removal firms – Closed.
Therefore, the logical conclusion is that the property market has become totally stagnant apart from re-mortgages, re-finance, debt-consolidation, product transfers and those seeking a new lender to replace their existing expensive Standard Variable Rates, some of which are still in the 6 to 8 percent ranges, despite the recent Bank of England Base Rate cuts to just 0.1 percent.
Yes, underwriting has become ever-more cautious, yes, more property equity is needed, but yes, many options and solutions remain available, although more hoops of fire to jump through.

“For all your Purchase, Remortgage and BTL needs, Fixed Price Conveyancing is available. Click here for your personal illustration 24/7″

 

Secured Loans:Second Charge
Second charge lenders are still lending, with a desktop or drive-by valuation available for loans up to £200,000 and maximum LTV’s of 80%. Higher limits are possible but at a premium, with tightened underwriting. In certain areas, some surveyors are willing to visit properties and guarantee there is no risk to you, the applicants. Additionally, work and employment circumstances will be looked at both sympathetically and sensibly. A loan is often ideal for the consolidation of escalating unsecured debt into a more manageable payment, particularly if a remortgage, further advance or unsecured loan is inappropriate or unavailable.

“For all your Purchase, Remortgage and BTL needs, Fixed Price Conveyancing is available. Click here for your personal illustration 24/7″

 

Bridging Loans:Bridging Finance
Fact – We are about to see a vast reduction in the number of lenders operating in this market, and full-status lending criteria may become bordering upon almost impossible to meet, with only a select few being able to access funding. There is a strong probability that lenders will want to see a higher degree of equity available.
However, non-status loans remain available, meaning that you need not have a perfect credit history behind you in order to achieve your objective.

“For all your Purchase, Remortgage and BTL needs, Fixed Price Conveyancing is available. Click here for your personal illustration 24/7″

 

Buy-To-let:Buy-to-Let
I have not seen these levels of lender attrition and fall-out since the crash of 2008. Knowing which lenders will still be around once the crisis is over is something I have continually monitored and reviewed, building experience and data upon, and calculating likely responses – lenders are a business, they are not immune to what is happening globally. My stance is very easy to explain, never ever, ever go for cheapest, go for what works and who can deliver. It is also helpful during these times to consider lenders who offer desktop and automated valuations, removing the requirement of a surveyor visiting the property.

 

If you think that you may need finance for whatever reason, either Personal, Business, Buy-to-Let, or Debt Consolidation, then please act now whilst channels are open, you can thank me later.

And as always if you need to talk, discuss, enquire or whatever, do give me a call – I’m here to help.

May I wish you, and your families, personal safety during these uncertain Covid-19 times.

“For all you Buildings, Contents and BTL Insurance, click here for your personal Quote Engine 24/7”

 

Want more?You may wish to read this Article too – If you want it, do it now

And if you are a Business, you may wish to read this – Stay Safe

 

 

 

Let us say “Yes, we can help” – Covid Chaos

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Office Mobile:  Call, SMS, Text, Whatsapp, BBM or Viber, 07951 238527

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Article credit; Copyright SUL © 2020

“For all your Purchase, Remortgage and BTL needs, Fixed Price Conveyancing is available. Click here for your personal illustration 24/7″

 

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If You Want It, Do It Now

If you want it, do it now - Finance and Coronavirus information

 

 

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If you want it, do it now…

There are currently some very serious issues in obtaining First Charge, Second Charge, Third Charge loans, and mortgages.

No, this isn’t designed to be sensationalist or be a sales message, this is written in very earnest seriousness whilst watching to Coronavirus develop and affect the money markets.

There is a very real scarcity threat looming ahead.

One Pound Sterling £1 is now worth roughly 1 Euro, under $1.2 USD, and around $2 AUD. The FTSE and Dow Jones have taken massive hits, crashing almost 10% in one day, and some say property prices may also suffer here too; I’ve heard figures of up to 30% price drop being talked about.

In times of dire uncertainty, lenders and institutions will always revert to a knee-jerk reaction, often citing others as a reason for their responses, and with massive Directors’ salaries and bonuses at stake, who can blame them for their own self-preservation of profit and self-interest – But that’s not really helping you, is it?

This week alone, I have seen 4 lenders fully withdraw from lending anything to anyone. They are closed for all business. There is an ever-growing list of others who are retracting, tightening policy and needing greater certainty (and equity) from their clients, often changing the rules after an application has been made – This applies to both personal borrowings and Limited Company business borrowing, indeed, certain sectors of routine trading are now Blacklisted until further notice.

In the last two weeks, we have seen the financial woes of 2008 coming back, but this time it isn’t self-made, it’s from Worldwide external events. This week, over 800 residential and BTL products have been withdrawn, and over 1,000 criteria changes have been made to individual lender underwriting rules, and it’s about to get a whole lot worse.

So, what does all this mean, to you?

Well, let’s look at some pertinent facts.

Trace back over the last 30 years and you will see that I was RIGHT about Endowment mis-selling, PPI mis-selling, Pension mis-selling, Mortgage mis-selling, the LIBOR rigging, Pension Transfer mis-selling, Property Market crash, Sub-prime Mortgage disaster, Self-Cert Mortgage issues – The list goes on and on – therefore I am probably right in my current thoughts too.

I am seeing the undercurrent of scare tactics arising, from the media reports that you can Google for free anytime you want – It’s the behind-the-scenes reality, and the daily dealings with lenders of all shapes and sizes, that you won’t have exposure to. So, when Zoopla predicts property sales are set to reduce by 60% it is time to consider just WHY they are saying this, what their thoughts are and what evidence this is based upon.

Lenders are like shoals of fish – when one moves and changes direction, the rest follow instinctively and in unison. I prefer to work with the free-spirited fish that can think for themselves and make decisions that are based upon fact, not fear – There are always solutions to problems, there are always lending sources that remain open, and thrive, in times of crisis.

Last week we saw the Bank of England cut their Base Rate from 0.75% to an unprecedented 0.1%, yet immediately, as a knee-jerk reaction, many lenders immediately announced that their product rates were being increased. The net result? Borrowing instantaneously became, in effect and on paper, over 1% more expensive. Additionally, many Base Rate Tracker products were withdrawn, leaving only Fixed Rate products available, and at a higher cost. With higher rates comes increased stress-test strain, combined with more rigorous underwriting, engineered in such a way that only the fittest and financially strongest can get what they either need or want. Combine all of this along with loss or decline of income and you have a melting-pot of serious problems brewing-up. Therein lies the problem.

Going back to the title again – “If you want it, do it now”

By now, you can see the logic of this: If you even THINK that you may need finance for whatever reason, either personal or for business, then please act now whilst channels are open, you can thank me later.

And as always if you need to talk, discuss, enquire or whatever, do give me a call – I’m here to help.

May I wish you, and your families, personal safety during these uncertain Covid-19 times.

 

Want more?You may wish to read this Article too – Tax Bill, or Tax Demand

 

 

 

Let us say “Yes, we can help” – If you want it, do it now

Office Telephone: 01379 644061

Office Mobile:  Call, SMS, Text, Whatsapp, BBM or Viber, 07951 238527

THINK CAREFULLY BEFORE SECURING ANY LOAN AGAINST YOUR HOME

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second charge loan

Have You Considered A Second Charge Loan?

Have You Considered A Second Charge Loan?

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Are you looking for a Remortgage or a Further Advance?
You can count on us to find the right home for your needs.
Thousands of second charge mortgages have been arranged in recent years, from an extensive panel of lenders across the whole of the marketplace.
They can be a great alternative for you when:

  • You fail an affordability test with your main first charge mortgage lender
  • You have an Early Repayment Charge on your first charge
  • Your current mortgage is Interest Only, and any changes would withdraw this option
  • You are benefiting from an existing low mortgage rate but want to raise capital
  • You are wishing to capital-raise for business purposes, including deposits for buy-to-let mortgages
  • You are keen to retain your current mortgage product but now have historic adverse credit.

Additional factors include:

  • Up to 100% of property value may be possible
  • Interest rates are comparable with regular mortgage rates
  • Variable rates and fixed rates are available, fixed for up to 5 years
  • The loan term may be from only 3 years, running all the way up to 30 years
  • The loan amount may be from £3,000 to £1,000,000+
  • You may be an Employee, Self-Employed, Expatriate, Portfolio or first-time Landlord or a Limited Company
  • There are usually no Early Repayment Charges associated with Second Charge Secured Loans

Any questions? Get in touch today.

Let us say “Yes, we can help” – Have you considered a second charge loan?

Office Telephone: 01379 644061

Office Mobile:  Call, SMS, Text, Whatsapp, BBM or Viber, 07951 238527

THINK CAREFULLY BEFORE SECURING ANY LOAN AGAINST YOUR HOME

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6 reasons why

6 Reasons Why You Should Consider A Second Charge Loan

6 reasons why you should consider a second charge loan.

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Interest rates.
These are much more competitive than you may realize, and are often comparable to regular mortgage rates, with a choice of variable or fixed rate options.

Affordability assessment.
Second charge lenders may be more flexible than first charge lenders. Both types of loan are heavily regulated, with the intention of providing the best advice for you, the consumer, however, second charge underwriting often follows a less stringent set of rules, and the lender underwriters are able to treat you as a human, not a number.

Adding a partner.
It is often possible to add a partner to a second charge, allowing income to be considered for both parties.

Loan purposes.
Requirements such as home improvements, debt consolidation, tax bill payment, school fees, holiday home purchase, all of these and many more, are acceptable purposes.

Interest only.
Interest-only products are available at very competitive rates, and, as there is no structured capital repayment built-in, these can be a very affordable alternative in many cases.

Completion times.
Dedicated and experienced underwriting teams work very hard to turn around cases in record times. Secured loans are very much faster than mortgages and remortgages.

Let us say “Yes, we can help” – 6 reasons why you should consider a second charge loan

Office Telephone: 01379 644061

Office Mobile:  Call, SMS, Text, Whatsapp, BBM or Viber,  07951 238527

THINK CAREFULLY BEFORE SECURING ANY LOAN AGAINST YOUR HOME

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A New Lender

A New Lender

A New Lender:

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A new lender has arrived, they are offering lower interest rates and are accepting cases that have been declined elsewhere.
The lender is a very worthy contender to the regular High Street names and has formally launched into the second charge loans sector. They have already had a period of market-testing its new products before launch to a wider market.

Here’s why you should consider them:
• Lower interest rates for many customers with credit issues
• No credit score – what you see is what you get
• Sensible affordability calculator
• Underwritten by humans, not a computer

The combination of these factors has already resulted in them seeing a substantial amount of business in England and Wales. They have cleverly identified niches in the market which are underserved by the regular lenders and you can get better rates and a higher chance of acceptance without being tripped up by your credit score. It’s good old-fashioned, common sense, manual underwriting.

Let us say “Yes, we can help” – A New Lender

Office Telephone: 01379 644061

Office Mobile:  Call/SMS/Text/Whatsapp/Viber  07951 238527

THINK CAREFULLY BEFORE SECURING ANY LOAN AGAINST YOUR HOME

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Cheaper than bridging

Cheaper Than Bridging

Cheaper than bridging

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Do you ever need short-term finance? If so, there is a fair chance that bridging will immediately spring to mind.
However, a loan may be a lot cheaper than bridging, and massive savings can be made with the correct approach.

Many bridging loans don’t complete – often because the benefits are not great enough to outweigh the costs – it just doesn’t make financial sense.
But a term loan with no early repayment charges could deliver a better result at far lower costs, which would make the whole project viable.

Here’s a recent example – The client saved a massive £10,000 over a 12 month period:
When considering a £150,000 second charge bridge the borrower saved over £10,000 by taking a term loan, and, unlike bridging finance,  it didn’t put them under pressure to refinance after a year.
In this case, the money was needed to complete and sell a development, but the loan was secured on the borrowers’ main residence. Consequently, rather than being forced to refinance, the term loan gave the borrower the required cash flow to roll straight over into the next project without paying another set of fees and costs.
Yes, bridging finance can often happen marginally faster as there is no burden of proving affordability – and there may be no monthly payments to service – But where affordability is not an issue, the interest costs can be more than halved, the need to find an exit is removed, and the costs of refinancing disappear.

On a Regulated term loan, the process is broadly the same but without any involvement by the borrowers’ solicitors, which can so often hold matters up for quite a while – It’s also cheaper than bridging.

So, next time you are thinking of a bridging loan, let me also explore the second charge term options for you.
Remember, second charges can be used for business purpose, tax or for heavy refurbishments – a low-cost second charge facility with the option to settle, or overpay without penalty, could make good sense for you.

Let us say “Yes, we can help” – Cheaper than bridging

Office Telephone: 01379 644061

Office Mobile:  SMS, Text, Whatsapp, BBM or Viber,  07951 238527

THINK CAREFULLY BEFORE SECURING ANY LOAN AGAINST YOUR HOME

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Unusual cases

Unusual Cases

Unusual cases

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Here are some straightforward, yet unusual cases and examples, of recent second charge loans.
Maybe you are in a similar position? If so, do get in touch.

Interest-only loan – where it reverts to capital and repayment after 5 years.
Mrs. T. had gone self-employed and wanted to reduce her outgoings in the short term but repay the entire loan over the full term. This was arranged and at a very competitive price within her budget.

Large consolidation loan – The customer failed affordability for a first mortgage application.
In general, our lenders disregard all consolidated credit from their affordability calculations and will consider up to 100% debt consolidation. This is a common issue which can often be accommodated with a second charge loan allowing you to remortgage, usually penalty-free, within in a year or so, when mainstream lenders are able to assess a case and meet lending criteria.

A remortgage solution – Often a remortgage would force a borrower to lose their interest-only product and could force them to take higher mortgage rates or even need to downsize immediately. A second charge could raise the cash needed and keep outgoings low. Therefore the borrower could stay in their home until they were ready to downsize in a few years time and pay off the interest-only mortgage at that point, remaining in control.

Borrowers still on work probation period – This can often push a remortgage option outside of lender criteria, as the lender requires an employment history track-record of stability for long-term lending. The options are therefore very limited. We have access to a number of lenders which consider work probationary periods, also special considerations for contractors and rolling contracts.

Newly self-employed business – Often there is the need to use dividend income from a previous business to demonstrate a loans’ affordability. Example: A client wanted to raise £100,000 deposit for a Buy-to-Let purchase, however, there was a complex mixture of employed and self-employed income, plus a recent change of business status. Although the proposition made perfect sense, a first charge lender would be unwilling and unable to consider the complexity, therefore a second charge loan was a perfect solution.

Maybe you are in one of these above positions? Situations can be really niched or mildly complex, yet there are solutions available.

Let us say “Yes, we can help” – Unusual cases

Office Telephone: 01379 644061

Office Mobile: SMS, Text, Whatsapp, BBM or Viber,  07951 238527

THINK CAREFULLY BEFORE SECURING ANY LOAN AGAINST YOUR HOME

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Withheld Consent On BTL

Withheld Consent On BTL

Withheld consent on a Buy-to-Let

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Let me tell you about this new second charge product which has now been released, aimed at withheld consent on BTL.

Many people will undoubtedly have had problems placing second charge loans behind certain BTL first mortgages as the lender won’t consent to a further charge, they want first and only charge.
A few of the first charge lenders which normally withhold consent include Santander, Mortgage Works, Platform, Paragon, the list goes on,  there are others.

This new product specifically solves the problem and at rates lower than previously available.
• Maximum loan of £50,000
• Maximum Loan-to-Value of 65%
• 1% loading on the interest rate, but otherwise subject to meeting lenders standard BTL criteria.

If the withheld consent on BTL also has arrears, we can accommodate this too.

This new product is just one of our lenders which doesn’t require consent from the first mortgagee.

As a reminder, it needn’t be a BTL, residential loans can also be arranged on the same basis.

 

Let us say “Yes, we can help” – Withheld consent on a Buy-to-Let

Office Telephone: 01379 644061

Office Mobile:  Call, Text, Whatsapp, BBM or Viber,  07951 238527

THINK CAREFULLY BEFORE SECURING ANY LOAN AGAINST YOUR HOME

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how to use a loan

How To Use A Loan

How to use a loan.

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Today is about how to use a loan and who can access one. The focus today is on affordability.

Income multiples may be ignored – no loan-to-income caps
The second charge income and affordability assessments can support far larger advances when capital raising.
If income multiples don’t fit for a remortgage, they probably will for our second charge lenders.

Recent job changes – probation period isn’t a problem
Some second charge lenders tend to take a more relaxed view, especially if the previous job was in the same sector.

Contract workers – even with some arrears and CCJ’s
If it’s a short-term/recent contract, how long have you worked in that sector?
If the stability is here, even if there are other problems in the background, please check with me.

Recently self-employed – less than 12 months
There is a lot of development within the sector and there are still lenders available where a period of short self-employment is acceptable. Some will work on an accountants projection from the first 6 months,  with low early repayment charges, so that you can refinance easily once self-employment is established longer-term. Poor credit is also accepted, so it may not be the cheapest option, but it allows wriggle-room until you can return to mainstream borrowing.

I hope you liked this How To Use A Loan article; if you think a loan is affordable to you but a lenders policy decision may stop you getting a mortgage, please do check with me or use the enquiry form below. I may have a second charge option which you could find suitable.

Let us say “Yes, we can help” – For Second Charge How To Use A Loan assistance

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second charge loan identifier

Second Charge Loan Identifier

Second charge loan identifier:

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Sometimes, a second charge loan can be a better solution than a remortgage, but it’s not always easy to know when. That’s why we’ve put together the second charge loan identifier.

When a second charge loan works better than a remortgage:

When you are on a low SVR or base rate tracker mortgage which is too competitive to remortgage away from but still want to raise additional funds.

When you are on an Interest-Only mortgage; A remortgage will force you onto Capital and Interest, often raising payment to an unaffordable level.

An excellent solution for recently self-employed people, and those who need to work off projected figures to prove income.

For those with adverse credit in the last 3 years.

For those who wish to raise money on Buy-to-Let properties.

A Second Charge can be used for almost any purposes (consolidation, business purposes, tax bills, etc)

Product overview: 

Loan amounts from £10,000 – £2,500,000

Low interest rates

Up to 95% of property value, sometimes 100%

Adverse credit registered over 12 months ago may be ignored

Fixed rates are also available

1st and 2nd charge BTL loans available

There is the ability for cases that are outside criteria to be referred

Interest-Only products are available

Can raise money on residential property for business purposes

Let us say “Yes, we can help” – For second charge loan identifier assistance

Office Telephone: 01379 644061

Office Mobile:  Call, SMS, Text, Whatsapp or Viber  07951 238527

THINK CAREFULLY BEFORE SECURING ANY LOAN AGAINST YOUR HOME

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