Specialist Second Charges The resurgence of second charges There was a time, just before the financial crash when second charge lending (or as they are known by the other name, secured loans), was a £6 billion a year industry with more than 500 brokers active in the market. Fast forward to 2009, that number of brokers had reduced to less than 30 and the number of lenders went down from almost 30 to two. After the recession had done its worst we begin to see the green shoots of recovery, with lenders returning to this much-needed market. After all, what was your client going to do when they needed to borrow money but their existing mortgage was on a rate of under 1% over base rate? The number of what we would call proper second charge lenders has now increased to 20, with three of these owned by individuals that originally started their career as a broker. Lenders such as these bring an invaluable insight to the market, as they are able to look at applications from a broker perspective. The market hasn’t yet returned to the heady days of £6 billion of lending per year, but with the lowest interest rates we have ever seen in the industry still available, rapidly improving criteria that CASE STUDY Need: £130,000 to repay existing unsecured credit and other bills. Issue: The applicants’ had only purchased their house two months previously and had ported their mortgage over from their previous property. An income multiple of over 7.8 x income was needed to meet the clients’ requirements and the loan term took the client over the age of 75. Solution: An advance with West One Loans to 78% of the property value. Result: The client was able to repay all existing credit, reducing his monthly outgoings from £3,337 to £1,009 - a saving of £2,328 per month. is almost always more flexible than a first charge and steadily increasing awareness amongst the general public, the market will continue to grow and will attract new lenders. At Specialist Financial Services, we offer two options to access the market: advised or non-advised. Either we give the advice or you do, if you have the correct Spotlight on West One Loans West One Loans is one of the largest bridging finance lenders in the UK, with a loan book of around £450m and lending in excess of £50m every month. Since their foundation in 2007, they have grown rapidly into a leading provider, lending over £2.5bn of short-term finance, to date. Through their West One Bridging Index, first published in 2011, they are a recognised voice in the bridging world and are founder members of the ASTL, FIBA and are Patrons of the NACFB. In 2017, they launched longer-term lending of second charge mortgages for both residential and Buy-toLet properties and will further broaden their specialist lending proposition in 2018 with the launch of development finance. Since 2014, they have been part of the Enra Group, who were ranked 35th in the Sunday Times Fast Track 100 fastest-growing companies in December 2017, the 4th successive year the group has appeared in the rankings. What our Introducer said... “Amazing as ever. You agreed you could do the case and provided an offer on the agreed terms. Simple idea but many fail to do this!” Ashley L-R., Broker www.SpecialistHub.co.uk 11 What the customer said... “It was a pleasure working with SHF; a crystal clear smooth and efficient process. Highly recommended.” Mr P. Feedback: Customers gave us five stars and said: “Your service was fantastic. Thank you.” permissions with the F.C.A. Income can be substantial and we have introducers earning in excess of £50,000 a year for passing a customer’s details to us.
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