OCTOBER 2023 – Have you seen our Secured Loan Second Charge proposal?
We NOW pay you 100% of the lender Proc Fee
Everybody seems to be talking about Second Charge Loans right now. Clients on competitive mortgage rates who want to raise capital, understandably don’t want to lose a low rate by remortgaging, a Second Charge could be the answer.
We also run a referral service so if you are not able to give advice yourself we can help with that too!
Why a Second Charge mortgage could be right for your client:
- Your client’s current mortgage has Early Repayment Charges (ERC’s)
- The current first charge mortgage is on a competitive rate which they wish to retain
- Your client has minimal equity for a remortgage
- Affordability could work out more on a secured loan versus a remortgage (interest only on the first charge)
- Your client has a complex credit profile which would make a remortgage more expensive
- The purpose of the loan may not be acceptable to first-charge lenders
Benefits of a Second Charge mortgage:
- Loans available up to 100% LTV
- Most legal purposes accepted as the purpose of the loan
- Arrears considered on many plans
- Quicker Completion time
- Clients can borrow between 5-30 yrs
- Can be more flexible criteria
- Advances from £10,000 – NO UPPER LIMIT (on referral)
- Low ERC’s – 0 to 2 months generally
|Second Charge Fee Structure|
|2% Master Broker fee on completion (£500 minimum, £2,000 maximum)|
|£199 Application Fee|
|Disbursement Fee - £100 (covers lenders reference & land reg search)|
|Valuation Fee - if applicable (some lenders use drive by or desktop valuations)|
|PROC FEE 100% of lender proc fee typically 2%|
NB, loans redeemed within 12 months will be subject to a pro-rata clawback of procuration fee.
Bespoke pricing available on request.