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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

For your no-obligation quote, click HERE…

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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

For your no-obligation quote, click HERE…

Return to Homepage HERE

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

For your no-obligation quote, click HERE…

Return to Homepage HERE

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

For your no-obligation quote, click HERE…

Return to Homepage HERE

 

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

For your no-obligation quote, click HERE…

Return to Homepage HERE

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

For your no-obligation quote, click HERE…

Return to Homepage HERE

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

Office Telephone: 01379 644061

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

THINK CAREFULLY BEFORE SECURING ANY LOAN AGAINST YOUR HOME

For your no-obligation quote, click HERE…

Return to Homepage HERE

Do you have Buildings and Contents Insurance? Click HERE

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

For your no-obligation quote, click HERE…

Return to Homepage HERE

For Buildings and Contents Insurance, Click HERE

larger loans accessible

Larger Loans Accessible

Larger loans accessible

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Larger loans are becoming more accessible this year and I am hearing about a bigger take-up, as more people realize the benefits of these, and how they may help them.
Loans from £100,000 to £200,000 are more common; here are some recent large loan scenarios where you may consider a Second Charge loan:

£200,000 – For business investment
A client wanted to buy a share of his current company. This would increase his income through dividends and he wanted a lender to use the extra income within the affordability calculation.

£150,000 – Refurbishment – No kitchen or bathroom
This client was considering a bridging loan to bring the property up to mortgageable standards and intended to move in and then refinance.
However, a term lender agreed to take on the case which removed the need for an expensive bridging loan, also saving unnecessary fees. The client also got a far lower interest rate and didn’t have the pressure of exiting the bridge, a win-win situation.

£97,000 – Full consolidation
This client had a combination of credit cards and expensive loans which had built up over the years.
They could afford to make minimum payments but not much more, so the balance was hardly reducing.
A full consolidation loan reduced the outgoings by £1600 per month and immediately started eating into the balance outstanding.
With the ability to overpay, the clients were in a position to make further capital reductions when it suited them.

£110,000 – To pay a tax bill
It’s that time of year where many people start to worry and struggle… HMRC do not take prisoners, there are no excuses allowed when they need their payments. A large loan may provide a very worthwhile breathing space.

These larger loans are more accessible than previously and although deemed as Regulated, they come under a different set of rules when compared to regular mortgages, therefore have underwriting advantages.

I am here to support you and your needs, feel free to speak to me directly or use online contact as below.

Let us say “Yes, we can help” – Larger loans accessible now

Office Telephone: 01379 644061

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

THINK CAREFULLY BEFORE SECURING ANY LOAN AGAINST YOUR HOME

For your no-obligation quote, click HERE…

Return to Homepage HERE

For Buildings and Contents Insurance, Click HERE

So You Think You Know About Loans?

So, you think you know about loans?

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Historically second charge mortgages, more commonly referred to as loans, were seen as a last chance option for a client’s borrowing needs. The rates were much higher and carried hefty early repayment charges. However, fast-forward to today, loans are regulated exactly the same as mortgages, and in many circumstances can be more appropriate than a remortgage. So… do you really know about loans and second charge mortgages?

There are many scenarios when a loan could benefit you when looking at capital raising and can offer a welcomed haven against some of the restrictions on the first charge (mortgage) market.

Characteristically, we see loans for customers who are looking to:
• Retain their current low-rate mortgage / interest-only mortgage
• Raise capital on BTL properties
• Circumvent the early repayment charges that a remortgage may be subject to
• Capital raise where any adverse credit means you are unable to remortgage on the high street
• Raise funds on a term-loan that would take you beyond normal retirement age
• Avoid paying upfront fees or costs for valuation
• Receive the funds sooner than a standard remortgage could offer

We are specialists in Residential, Buy to let and Commercial properties, and offer advice and recommendation on the marketplace as a whole, we are not tied to one lending source, application route, nor institution. For loans, we have access to a diverse panel of lenders who are able to provide solutions for all circumstances.

Let us say “Yes, we can help” – So you think you know about loans?

Office Telephone: 01379 644061

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

THINK CAREFULLY BEFORE SECURING ANY LOAN AGAINST YOUR HOME

For your no-obligation quote, click HERE…

Return to Homepage HERE