Unusual Cases

Even more reasons for a secured loan

Even More Reasons For A Secured Loan

Even more reasons for a secured loan.

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I would recommend that you take a quick look at some of the key elements below. Perhaps you, your family or friends fall into one or more of these areas?
Here at SUL, I still have access to the largest second charge panels in the marketplace so if I can’t place a case, I doubt anyone can. I remain fully Independent. Feel free to contact me using the details below this article.

For Residential Owner-Occupied Homes

Examples of acceptable circumstances for Contractors and those with short work history:

  • 6 months contract or a rolling 3-month contract renewed at least once
  • Umbrella companies acceptable
  • Contracting less than 12 months – Weekly contract rate x 46 (minus expenses)
  • Only 1-year track record of employment in the same line of work required

Acceptable Properties; usually unacceptable for mortgages:

  • Ex Local Authority flats/maisonettes
  • Flats above commercial premises
  • Flats above take-away, restaurants, pubs
  • High rise flats and deck access

For those with large families:

  • Up to 4 applicants accepted with all incomes considered
  • Second charge applicants do not have to be on first mortgage
  • Borrowing may run into retirement
  • Up to age 85 at end of term
  • Current income used if retirement is more than 10 years away

For cases where Interest Only is preferred:

  • Up to 60% of property value can be used
  • An investment vehicle or downsizing may be used as an exit route
  • An Impaired Credit History is acceptable
  • Current Debt Management Plans may be considered
  • Up to 3 CCJ’s and 2 missed mortgage payments are allowed, up to 70% of the property value
  • Up to 3 missed unsecured payments in last 6 months are allowed
  • Telecoms missed payments ignored

Buy to Let

  • Owned personally, by a trading company or an SPV
  • Portfolios of up to 15 properties
  • Older or retired landlords – interest only up to 75% of property value and up to age 95 at end of term
  • Expats – No minimum income required
  • Impaired credit plans available
  • HMO’s up to 8 bedrooms and multi-unit blocks up to 5 units

Many independent lenders have numerous individual underwriting niches which on their own are valuable and can fill the gaps on tick-box circumstances.

Let us say “Yes, we can help” – Even more reasons for a secured 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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Bank of Mum and Dad

Bank Of Mum And Dad

Bank of Mum and Dad

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You have probably heard of what is often referred to as the Bank of Mum and Dad stepping in to help their children get on the property ladder? But did you know this unusual `bank’ was reported to be the ninth-biggest lender in the country last year? That’s quite a surprise for many people.

However, it’s probably not news to you that many first-time buyers struggle with raising large enough deposits and meeting the regulatory affordability criteria of the lenders in the marketplace – therefore many are being helped by their parents using their own parental savings, liquidating bonds and releasing equity to gift deposits.
But… sometimes families who are desperate to help their children get their first home, simply don’t have these options and cash resources to dip into. So, what other options are left for them?
Have you ever considered Second Charge loan to release home equity instead of using cash savings?

Research has revealed that the Over-50’s in London account for 65% of owner-occupied housing wealth – that’s an astonishing amount of housing equity tied-up in bricks and mortar. This embedded equity is perfect to help with the first-time buyer problem.

So, if you or your relatives want to help, but simply don’t have the cash resources available – a Second Charge mortgage, also known as a Secured Loan, may be the perfect workaround and keep the entire family happy. Bank of Mum and Dad is able to help, whilst the next generation is able to get on the housing ladder with a gifted deposit.

With interest rates comparable to normal mortgage rates they can be a cost-effective way of borrowing. It is also perfect where you might already have an existing mortgage, particularly with high early-redemption penalties, or an attractive interest rate that you don’t want to lose.

As an additional benefit, they’re quick – usually a two to four-week completion average, but can be as little as days, therefore allowing plenty of time for `the kids’ to get sorted with a gifted-deposit mortgage.

Let us say “Yes, we can help” – Bank of Mum and Dad

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…

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funding home improvements

Funding Home Improvements

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When did you last think of Second Charge mortgages for funding home improvements?

Second Charge mortgages can be the ideal alternative to a re-mortgage or unsecured loan if these don’t suit your circumstances, or where you would fail an application due to underwriting criteria.

This is why they can be really useful for when you want to carry out home improvements.

Here’s how we helped someone fund a home improvements project in just 7 days from the application being received to funds being released.

Situation
A client needed £35,000 for funding a home improvements scheme. This included replacing and insulating the roof, rebuilding the staircase and converting the loft into an en-suite bedroom – converting and transforming the property from a 2-bed  into a 3-bed house.

Challenge
The client had sufficient equity in their first charge mortgage, however, did not want to raise additional finance through a further advance or a remortgage due to high redemption penalties that would be incurred by changing the existing arrangement.

Solution
In just 7 days…
The client received their funds – a £35,000 Second Charge mortgage… and they were able to complete the project.

Let us say “Yes, we can help” – Funding home improvements

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…

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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

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

lending into retirement

Lending Into Retirement

Lending into retirement.

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I wanted to let you know about Lending Into Retirement products that may help you, or those you know, where the end of the current mortgage term has been reached and you do not want to sell your residential property.

Rates are comparable to regular mortgage rates.

  • No maximum age for lending
  • Loans of up to 75% of property value
  • Loan may be Interest Only
  • No income multiple – loan is based on affordability
  • Retired with dividend, Investment or Pension income?
  • Self-employed income considered beyond the age of 70
  • Lifestyle Boost into retirement mortgage product
  • Downsizing accepted
  • No credit scoring
  • Up to 4 applicants
  • Manual underwriting, not computer-driven

Examples:

  1. Applicant aged 72 – His current mortgage lender would not extend the term and allow lending into retirement due to his age. He did not want to sell his residential property. We managed to arrange a 14 year term on an interest-only basis.
  2. Couple aged 75 and wanted to help their daughter with a deposit for her residential property. They did not want to do an Equity Release and only wanted a 5 year interest-only term. We managed to get them the funds they required with the Lifetime Boost into retirement product paying a set amount each month on interest only.
  3. Applicant aged 74 who didn’t want to sell his property but couldn’t afford the re-mortgage on his pension income. We added his son and daughter to the re-mortgage, who owned their own residential homes. Their surplus income was used for affordability purposes. Although added to their father’s mortgage they didn’t need to be added to the title deeds saving them from any stamp duty fees.

 

Let us say “Yes, we can help” – Lending into retirement

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…

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Recent Bad Credit

Recent Bad Credit

Recent bad credit:

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We have been working with a specialist provider of residential second charge mortgages lending to customers with recent bad credit, who are unable to obtain finance from traditional high street lenders. This can be for a variety of reasons, including such issues as mortgage arrears, Court Judgements, pending bankruptcy, Etc.

  • Up to six months current mortgage arrears accepted
  • Arrears on subsequent charges ignored
  • Up to £100,000 (more on referral)
  • Any amount of CCJs and defaults (past and present)
  • Pending bankruptcy action
  • Income tax issues and/or payment problems
  • Also available on BTL properties
  • Variable interest rates, or 3 and 5 year fixed plans available

This plan allows you to “buy” some breathing space if you have financial issues or problems.

Let us say “Yes, we can help” – Recent bad credit

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…

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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

For your no-obligation quote, click HERE…

Return to Homepage HERE

clear credit debt

Clear Credit Debt

The Problem – Clear credit debt

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A couple needed to add a downstairs bedroom and bathroom to their home to improve their daughter’s standard of living. The couple approached their bank for a loan and were poorly advised (no surprises there) to pay for the refurbishment work on their credit cards. The Mortgage Adviser in their bank planned to help them to raise funds to clear the credit card debt through a further advance when the work was completed. Unfortunately, when they returned to the Mortgage Adviser in their bank, their debt to income was too high for them to capital raise to consolidate the debt.

The couple had accrued £100,000 worth of debt across multiple credit cards and were paying £2,999 per month minimum payment on their cards. Unsure how to consolidate the debt, they explored whether they could remortgage their house with another lender to clear the credit cards. Their case was reviewed, taking into account their new circumstances, however, they were reluctant to move their mortgage to another lender because they were tied into a competitively priced five-year fixed deal that wasn’t due to expire until June 2021. Remortgaging now would mean the couple would have to pay a very expensive early repayment penalty charge.

The Solution

A Specialist Team was asked for help. A review of the case provided an illustration demonstrating that although there were some first charge mortgage lenders who would consider the case, the cheapest option was actually a second charge mortgage, to clear the debt. The illustration clearly highlighted the cost difference when they factored in the cost of the early repayment charges (if remortgaging) and total cost of the loan including interest rates and fees.

The customer was happy to proceed with a second charge mortgage product financed by a well-known name.  The specialist team processed the case directly with the customer from this point, keeping everyone updated throughout the process. The case completed within just four weeks, enabling the couple to consolidate their debt into one simple monthly repayment of £657.97 per month, a massive saving on their previous monthly outgoings.

Let us say “Yes, we can help” – Clear credit debt 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…

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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

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…

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