5 minute read on why a second charge could be a solution

We are currently taking enquiries from brokers and placing cases for the following:

Customers on lifetime trackers or other products with very low rates, not deals that need disturbing!

A second charge can help by raising the additional funds required, perhaps even with a different term to the main. The main mortgage remains untouched on its very competitive rate.  If or when that mortgage comes up for a review, you can consider consolidating the second charge.

Customers that have accumulated adverse credit since last reviewing or taking out their main mortgage.

Second Charges are more flexible around adverse credit, with some lenders ignoring items once they 12 months old.  A customer could secure the lending needed now, carry out their plans and once the adverse credit is older, you can put them back to a remortgage to clear the secured loan.  A temporary solution to a current need.

Customers wanting to debt consolidate.

Second Charge lenders offer more when it comes to consolidating debts, with less restrictions on maximum LTV, loan amounts and loan or debt to income ratios, also no requirement to treat some of the debt as continuing within affordability calculations, when its being consolidated.

Customers that need that bit more on affordability calculations.

We have lenders that will consider up to 6 times income or income and expenditure based affordability lending, if there is proven and sufficient surplus to afford the secured loan it could be approved.

Customers that have bonuses, commission and overtime

We have second charge lenders that will take 100% of bonuses, commission and overtime.

Self employed customers with 1 years accounts

Your customer may have recently started a new business or changed from employed to self-employed.  We have lenders that will consider this, as long as there is at least 1 years accounts.  Whilst some first charge lenders will also consider this, the LTVs and terms can often be restrictive.

Customers need a higher LTV.

A customers lending requirements may take them above a traditional 90% LTV for a remortgage, second charges can go to 100% with some offering 140% with a smaller loan size.

Where a first charge lender will not lend due to the loan purpose

Second charge lenders will lend for any legal purpose, this includes tax bills and repaying business loans.

See more criteria here

Whatever the query, just get in touch and we’ll discuss all available solutions for each of your customers based on their circumstances.

Call on 0800 316 2224

Bridging saves delayed property purchases in first quarter

Funding a chain break once again the most popular reason for obtaining bridging finance, according to the latest Bridging Trends data.

Key data points from Bridging Trends Q1 2021:

  • Bridging loan market stabilised
  • Chain-break most popular use
  • Average LTV climbs to 55%

For the second consecutive quarter, the most popular use of a bridging loan was to fund a chain-break, contributing to 20% of all loans in Q1 2021, down from 23% during Q4 2020.

Purchasing an investment property was the second most popular use for bridging finance in Q1, falling to 19% of all lending, from 21% in the previous quarter.

The data highlights how bridging finance continues to be an increasingly attractive proposition to buyers who are looking to save their delayed property purchases.

Whilst demand for bridging loans for business purposes increased from 10% to 14% in the first quarter of the year, as businesses quickly readied themselves for lock-down restrictions easing.

Elsewhere, figures confirm the UK bridging loan market stabilised in the first quarter of the year, as Covid-19 lockdown restrictions continued.

Total contributor lending increased to £144.51 million, a 5% rise on the previous quarter (£137.22m), largely attributed to new contributors joining Bridging Trends: LDN finance and Optimum Commercial Finance.

Regulated bridging loans transacted by contributors remained unchanged from the previous quarter, at 48% of total lending. Meanwhile, second charge transactions remained at 22% of market share in Q1 2021.

The average weighted monthly interest rate in Q1 2021 was 0.74%. This was marginally higher (0.02%) than in Q4 2020, and still considerably cheaper than rates offered before the Covid-19 outbreak (0.80%).

The greatest shifts in Q1 2021 were the average loan-to-value (LTV), rising to 55.2%, from 51.3% in the previous quarter. This could be attributed to the increase in availability of higher LTV products over recent months, in response to borrower demand.

The average term of a bridging loan climbed by one month to 12 months, falling in line with the same quarter in 2020. Whilst the average completion time on a bridging loan application increased to 53 days in the first quarter of the year, up from 50 days in Q4 2020. This is the highest figure recorded since Bridging Trends launched in 2015.

The top criteria search made by bridging finance brokers during Q1 was ‘maximum LTV,’ according to data supplied by Knowledge Bank. Followed by ‘regulated bridging’ and ‘minimum loan amount.’ This further indicates the growing demand for higher LTV products on new home purchases.

Home Improvements the new norm?

In a recent trends report carried out by Rated People it shows the level of customer desire for home improvements and therefore the required need to raise capital for their planned works.

Home improvements tops many peoples wish list for 2021 and this just happens to coincide with £250bn of mortgage product maturities, which is up almost 50% on 2020.

Whilst many of these clients will be reviewing their current mortgage situation, they may also be considering additional borrowing to fund home improvements, perhaps to accommodate a change in lifestyle.  If not already doing so, we would urge you to contact your existing customers and discuss their requirements.

The reports also shows us that the pandemic has changed UK home priorities when it comes to what they want from their homes. They state that many of the UK populous want to add space to their current homes.

  • 55% of the UK worked from home in 2020 but many did not have the home space they needed
  • 38% of respondents said they wanted to improve or create home offices in 2021.
  • 43% of the UK plan to work more from home even when COVID-19 restrictions are lifted

Is there any wonder, when the survey showed, of those working from home:

  • 41% don’t have a proper desk
  • 39% don’t have an office chair
  • 29% have to clear toys off their “desk” each day
  • 24% are embarrassed by the background
  • 22% work sitting on the floor

Rated people state that ‘home office’, as part of home improvements, massively increased in the run up to 2021. By 139% for those wanting a garden room and 104% increase for additional rooms within the home and 51% increase in those wishing to have a studio construction. They go on further to predict that home office improvements will be one of the biggest trends of 2021.

Furthermore, outdoor space has become all the more important following the pandemic with 64% of UK residents say they wouldn’t even buy a house without a garden now, where those that already do have gardens 47% have stated that they will be making improvements in the coming year.

Whilst you are talking to your customers about new mortgage rates, you may find they have additional borrowing needs.  In the main these requirements can be satisfied by a further advance or a new mortgage with an alternative lender.  But what happens when these options aren’t available or accepted by a lender? Especially if the pandemic led to a change in circumstances.

A second charge mortgage could be the answer.

  • Rates from 3.37%
  • 100% LTV available (140% for small loan sizes)
  • Lenders will also consider 100% of regular bonus, commission and overtime
  • Impaired credit, CCJ’s, defaults, IVA and DMP’s
  • Previously furlough workers who are back working
  • Mortgage payment holidays with proof of returned full payments
  • Secure on Buy to Let

Furthermore, you might be talking to customers who are have early repayment charges, tied into he current mortgage or unable to move the mortgage due to it being restricted by interest only options or increase in payments if moved to a repayment basis.  If further borrowing is needed, a second charge can also help.

Why a second charge mortgage could be the solution:

  • Your client’s current mortgage has a high early repayment charge.
  • Your client may be on a competitive mortgage rate they wish to retain.
  • Your client may have an interest only first charge
  • For affordability reasons e.g. complex income
  • High LTV required
  • Your client has a poor credit profile

A second charge can be used to fund any legal transaction, which might be:

  • Home improvements
  • Debt consolidation
  • Investment for another property purchase
  • Business purposes
  • Gifting deposit
  • Tax bills
  • Weddings

To move or improve?

One of the side-effects of lockdown is that many people are re-evaluating the amount of space they need in their house and garden or if they need to move to be closer to family.

Many people are simply taking advantage of the current stamp duty holiday and low interest rates. However, if your customer wants to stay put for family, friends, work or schools, they may just want to improve their current home.

Customers might be looking for:

  • Loft conversions
  • Single or double extensions
  • Garage to room conversions
  • Reconfiguration of the existing layout for more space
  • Outdoor cabin as a playroom, home office or a place to relax

In the main the traditional route will be a further advance with the current lender or a new mortgage with an alternative lender.  But what happens when these options aren’t available or accepted by a lender? Especially if the pandemic led to a change in circumstances.

A second charge mortgage could be the answer.

Whilst during the lockdown some second charge lenders tightened their criteria and lowered LTVs, we are now seeing them come back into the market and getting back to somewhat pre COVID offerings.

Just recently, lenders started to offer 100% LTV second charges for both employed and self-employed clients.  Some are even offering 140% LTV for small loan sizes.  Lenders will also consider 100% of regular bonus, commission and overtime.  Those that have been on furlough will be considered once they have a full month’s payslip.

Secured loans are usually easier to get approved compared to a first charge mortgage, especially if your customer has had credit issues in the past, a change of circumstances or complex income.

Also, a relaxation in planning laws under the permitted development rights, may spur homeowners to embark on home extensions.

Why a second charge mortgage could be the solution:

  • Your client’s current mortgage has a high early repayment charge.
  • Your client may be on a competitive mortgage rate they wish to retain.
  • Your client may have an interest only first charge
  • For affordability reasons e.g. complex income
  • High LTV required
  • Your client has a poor credit profile

A second charge can be used to fund any legal transaction, which might be:

  • Home improvements
  • Debt consolidation
  • Investment for another property purchase
  • Business purposes
  • Gifting deposit
  • Tax bills
  • Weddings

Bridge to the land of opportunity

A short guide to bridging finance

Despite the happenings of 2020 and continued challenges, bridging finance saw an increase in activity during the second half of 2020 and this continued in to 2021.

According to figures produced by MT Finance, Q2 2020 was hit badly, as the modern lending world dealt with the uncertainty of a global pandemic.  Lenders reduced LTV’s and tightened criteria whilst others closed their doors. As a result, compared to 2019 the bridging market was down 37.9% overall.

However, Q4 lending was almost double that of Q2 and according to the Association of Short-Term lenders, it hit record levels of applications with some 25% up on the same period 2019.

If our own activity at Clever Lending is anything to go by, we are continuing the same trajectory in Q1 2021 despite lockdown 3.0, the appetite is clearly still there but what does this mean for brokers?

Don’t turn a blind eye to this opportunity and solution.

Some advisers have conducted business in this area before and in fact feel experienced.  Others may have heard of bridging, looked into it, but not felt sure on how to proceed.  We would urge you to read the information below and talk to us if you feel bridging would be a suitable solution, for your customers.  Seeking new opportunities is key to not only surviving but thriving.

If you’re relatively new to the mortgage market or haven’t yet explored the options within bridging finance, you may not be fully aware of how it works or how it could help your clients.

This short guide will give you an overview of bridging finance, the benefits to you and your clients, that will drive additional income to your business and solutions for your customers, so they don’t seek them elsewhere!

Why

Firstly, you have to think why bridging finance should considered as a viable solution. A massive aspect of bridging finance is the flexibility it provides, this is key.  Bridging allows borrowers to take advantage of opportunities that present themselves when time is critical, securing properties at the time they are available, perhaps when traditional mortgages lenders won’t lend.  It can also help in emergency situations, such as chain breaks or in instances where speed is of the essence.

As the name suggests, they bridge the gap between needing funds to purchase and an exit plan, that being a traditional mortgage or sale. Typically, over a short term of 12 months.

What

What should you know If a client gets into a critical situation, say a property chain has broken down, but they still want to purchase their dream home or as an investment opportunity they want to buy, renovate and sell, you’ll need a product with flexibility to lend.

A traditional lender may not lend on a property which needs work and is not classed as habitable, that is where a bridging solution can help.

Currently, LTVs are a maximum of 75% (there is a BTL refurbishment deal up to 85%) and the customer will need a credible ‘exit’ for the finance, such as sale of property or a traditional mortgage (such as a remortgage or BTL as they want to rent the property out).

  • Bridging finance is a short-term loan that can be used until term finance is secured, the next stage of financing becomes available or the sale of the subject property
  • It can be speedy, flexible, and secure form of lending that offers your clients the finance they need and more importantly, when they need it
  • For clients that are developing property, it can save them time by allowing them moving onto their next project prior to sale of current projects or securing term finance.

When

When your client needs finance to purchase, they may need it quickly, the answer lies in bridging finance. Whether a regulated transaction or unregulated, bridging finance could be invaluable to your client, helping them achieve opportunities to secure a home or fulfil investment opportunities.
  • Light, medium and/or heavy refurbishment, where investors renovating a property need to make it fit for purpose or mortgageable with a mainstream lender, or even to develop property to increase its potential value of yield, think HMO or similar
  • Auction purchase, when a property is purchased at auction, an investor will need a quick solution so that they do not miss the opportunity and will need to complete within 28 days.
  • When the sale and subsequent purchase are not continuous and may fall through. Known as chain breaking, your client may purchase the next property prior to the completion of the sale of the first property

How

We are experts in bridging finance. Whether it’s complex development transaction or a simple auction purchase, we have the answers you and your client needs.  You don’t need to be the expert because we can be the expert for you

CASE STUDY

Background

The introducing brokers clients wanted to downsize to their ideal property to retire, but due to the market conditions they had delays selling their current property.  They had found their dream home and didn’t want to miss out on it.  As both clients were aged 68, they had found getting a traditional mortgage wasn’t possible due to affordability.

Solution

Matt at Clever Lending took on the advice for the introducing broker and obtained a regulated bridging solution, over the two properties.  The lender accepted the client’s proposal, property security and exit plan that once the original property sold, it would clear the finance in full.

This also ensured the clients could complete the purchase before the end of the stamp duty holiday.

New Mortgage£278,0000.48%Regulated Bridge12 months

Broker income £1,933

CRITERIA

  • Max 75% LTV
  • Rates on residential from 0.42% and commercial from 0.75%
  • Second charge bridging max LTV 75%
  • Land max LTV 60%
  • See more criteria here

You can read further information here

Focus for a few Seconds

We all know that First charge lenders tighten their appetite at higher LTVs, although we have seen movement latterly with 90% LTV appearing once again.

The continuing issue is acceptable income sources for your clients borrowing requirements, which is restricting options for capital raising by remortgaging and further advances.

This is where you must focus on alternative solutions, just for a few Seconds, consider all the mortgage and product transfers you may have done over the past 2 or 3 years, many on 5 year fix rate,  many millions of people are now in lockdown 3.0 and may need to change or upgrade their living space.  Home improvements are rising to the top of the “must do” list, equally a time to revisit finances and restructure.

It will be the 5th anniversary of the Mortgage Credit Directive this year and market polls show that some mortgage advisers still do not consider a second charge, when reviewing or advising on their clients additional borrowing needs.

This is equally important during the term of their current product! – do you look at a Second Charge as an alternative to a remortgage, if further borrowing is needed?

Communicate with your clients now and regularly, they may have borrowing needs you are not aware of.  The answer could be a Second Charge, especially whilst they are within the Early Repayment Charge period. There will be many of your clients looking at home improvements, wishing to have more room, a home office perhaps.

Take a look at our recent case study to illustrate this point, you can also see current criteria parameters to show the breadth of lending available and current rates.

Case study

Enquiry

The customers wanted to debt consolidate, raise additional funds for home improvements and to pay for their wedding.   One applicant was previously employed and had moved to self-employed with one year’s accounts.

Solution

Becky was able to source a lender and secure a second charge mortgage saving the client’s £223 a month, this included the additional funds needed.

New Second Charge £91,000, payment £633 per month, 2-year fixed rate, 80% LTV

Click here to see more criteria on Second Charges and here for more guidance

The Stamp Duty Land Tax Holiday Deadline is Looming – Solutions are available

Bridging can offer the solution for those worried about the stamp duty deadline.

The initial effects of the first lockdown saw the country all but close, however as the restrictions eased, towards the end of the year, mortgages advisers saw a massive uplift in purchase activity.

This was spurred by the increase in the nil rate stamp duty band which amplified the confidence of both buyers and sellers.

This unseasonal uplift in property transactions does however cause an issue, which is on the near horizon and approaching at a pace.  Many customers currently in the process of buying will be apprehensive of completing the transaction on their dream home ahead of the stamp duty holiday ceasing on the 31st March.

We are all aware of the servicing issues amongst lenders and solicitors, as this bottle neck continues to grow, the anxiety levels will further increase. This is by no way a dig at the lenders or the solicitors, it is a by-product of a UK government tax incentive, alongside a major pandemic which has seen lenders having to process payment holidays, review lending criteria to fit a changing market and in some cases switch to a more manual underwriting process.   Solicitors have also seen a longer processing time for items such as necessary searches when buying a property.

Adding weight to this is data published by the L&G Mortgage Club indicating that it will take more than 120 days to apply for and complete on a mortgage.  Estimations are that there are over 365,000 mortgage applications currently in the pipeline that may miss the stamp duty deadline on the 31st March.

If not already doing so I would urge any mortgage advisers to be managing expectations of their clients and perhaps be discussing measures for alternative solutions if the desire is to complete before the stamp duty deadline.

Bridging finance offers a quick solution that can help clients bridge the gap over the current back log or a solution if the property chain has broken due to purchasers withdrawing or customers having mortgage offers cancelled.

We have experts at Clever Lending that talk any advisers through this solution to see if it’s viable for their clients, the key thing however is act now and be prepared.

We always work hard with advisers to manage application to completion with any time critical cases. However, we do understand that many mortgage advisers have not been involved with a bridging case before which is why we can do the regulated advice for you should you require, it’s your choice.

Be prepared and we are here to help you, just talk the case through with us, it may be the solution needed and may just save your clients their dream home.

The Governments position on extending the stamp duty holiday

(Note: This response was received pre-Christmas and the most recent lockdown)

There is a strong push from the industry to extend the stamp duty holiday past the 31st March, with many industry commentators predicting an extension of sorts.   However, the government provided the response below.

More than 22,000 people signed a petition calling for the stamp duty holiday to be extended for a further six months.

The petition stated: “Extending the stamp duty holiday for an additional six-months will assist many buyers who are looking to move to a property that they will not be able to afford otherwise. This will help to stabilise the housing market.”

As it received over 10,000 signatures, the government was required to respond.

The Treasury said the stamp duty holiday was designed to be a “temporary relief” to stimulate market activity and support jobs that rely on the property market.

The government does not plan to extend this temporary relief”, it stated.

It added that the pandemic caused uncertainty for buyers and sellers with property transactions down by as much as 50% during the first lockdown

To stimulate immediate momentum in the property market and to support the jobs of people whose employment relied on custom from the property industry, the government decided to introduce a temporary Stamp Duty Land Tax (SDLT) relief. This relief increased the starting threshold of residential SDLT from £125,000 to £500,000 from the 8 July 2020 until 31 March 2021. Since the relief was introduced, transactions have increased and seasonally adjusted data shows that in October 2020, transactions were 8% higher than October 2019.

“As the relief was to provide an immediate stimulus to the property market, the government does not plan to extend this relief. SDLT is an important source of government revenue, raising several billion pounds each year to help pay for the essential services the government provides,” it said.

The Treasury confirmed it will maintain the stamp duty relief for first-time buyers which increases the starting threshold of residential SDLT to £300,000 for property purchases below £500,000.

Clever Lending offering reduced bridging fees!

We’re currently seeing one of the busiest housing markets in over a decade as people rush to beat the Stamp Duty Land Tax (SDLT) deadline.

To help with this, for a limited time, we’re offering reduced fees for bridging and regulated bridging enquiries.

On average, house prices have increased by 3.5% over the past 12 months, and the first quarter of 2021 is set to record a property uplift of 100,000 additional sales before the end of March. Nottingham, Manchester and Leeds appear to be the most buoyant cities, with house prices increasing over the past year by 5.3%, 5.2% an 4.9% respectively.

However, it’s estimated that only half of the mortgages applied for in January will be completed before the deadline due to the large increase in both demand and volume of moves.

How a regulated bridging loan can help

Bridging loans can provide quick funds to bridge the gap if a customer is seeing a delay with the purchase or the chain has broken with lost buyers. They work by allowing the customer to borrow funds to buy their new property, before selling the current one (you can read more here). This could allow the customer to buy their new property, save the stamp duty and then transfer the mortgage to a more traditional one once sold.

Paul Day, New Business Development Director at Clever Lending, said: “As there’s been such a high demand on brokers and lenders in the run up to the end of the Stamp Duty holiday, we’re offering a discount on our bridging fees.

“This will allow our brokers to secure finance for their customers who are experiencing delays with their property transactions and get them over the line before the end of March.

We have a dedicated in-house regulated bridging team who are happy to take on the advice process or package the case with the introducer giving the advice.”

To take advantage of our reduced bridging fees, give us a call on 0800 316 2224 or email enquiries@cleverlending.co.uk

*Data taken from Hometrack’s UK House Price Index Report for October 2020

Bridging can help ‘beat the stamp duty holiday rush’

We’re encouraging brokers to consider regulated bridging loans, as a solution for delayed property purchases, if a chain has broken or completion is looking unlikely to be achieved before the end of the Stamp Duty Land Tax (SDLT) holiday.

Our team believes regulated bridges are a great short-term solution to make sure delayed transactions are complete – and new purchases can be made – in time for when the scheme ends.

Paul Day, our Director of Business Development, said: “The property market has been extremely buoyant over the past six months, with people taking advantage of the Government’s SDLT break.

 “Although we don’t know if this will be extended, there are reports that there are up 50% more homes in the sales process than there were this time last year, we are also  getting messages from lenders and particularly solicitors saying they’re very busy and getting booked-up as the deadline looms.

“A bridge could come in here and save the day, by providing quicker short-term finance to secure new properties now and save the SDLT. A bridge could even help the property chain move and achieve the deadline, with the exit being a traditional mortgage.”

Richard Deacon, Sales Director at Masthaven, said: “Clever Lending are one of a rare breed of introducers who tick every box on a lender’s wish list. They understand the bridging market – as well as each specific bridging loan they undertake. We have worked with them for over many years now and the relationships we have are as strong as ever.”

Paul continued: “The latest Bridging Trends report, which Clever Lending contributes to, shows a 46 per cent rise in gross bridging loan volumes in Q3 2020, as activity recovers from the Covid-19 lockdown.

“This type of finance is a great solution for home buyers, and I would urge brokers to get in touch if they have clients who are looking to take advantage of the SDLT holiday while they can. Clever Lending are happy to take on the advice process or package the case with the introducer giving the advice.”

Why a Second Charge Mortgages

A second charge mortgage is additional borrowing against a property which sits behind a main mortgage. The result is two separate loans secured against the value of a property, but the second loan will not affect the first.

A second charge mortgage can be used for many purposes, some of which are listed below.

Second charge mortgages run from a minimum 3 years to a maximum of 35 years and borrowing limits ranging from £10,000 to £1,000,000.  There are specialist buy to let products as well.

Second Charge Mortgage?

A second charge mortgage has a variety of uses, with lending based on the borrower’s credit profile, income, property, borrowing required and reason for the funds.

You should consider and compare a second charge mortgage when offering advise on a remortgage and vice versa.

Most popular uses for a Second Charge Mortgage:

  • Home improvements (extensions, renovations)
  • Debt consolidation (high interest rate debt to lower rates)
  • Investment for another property purchase
  • Business purposes
  • Gifting deposit to family
  • Paying tax bills
  • Paying for weddings, cars or once in a lifetime holiday

Why a Second Charge Mortgage and not a remortgage?

Remortgaging to a new lender can sometimes be the most cost-effective way of raising capital or releasing equity from a property.

However, many customers have a competitive interest rate on their main mortgage that they wish to retain or have an early repayment charge to leave the existing lender and mortgage product.

Therefore, it’s important to give advice as to the best option for your customers individual circumstances, Clever Lending team can help you with this on 0800 316 2224, option 2, option 1.

Other reasons, your customer, should consider a secured loan over a remortgage are

  • They may have an interest only first charge and a lender would want to move it to a full repayment mortgage which might be unaffordable.
  • For affordability reasons e.g. complex income, multiple income sources
  • Higher loan to value required (loan amount/property value), secured loans allow this to be higher than traditional mortgages
  • A poor credit profile that a traditional mortgage lender won’t accept

Who qualifies for a second charge mortgage?

Much like a first charge mortgage, lending is based on the borrower’s credit profile, income, property, borrowing required and reason for the funds.  Therefore, there are a lot of factors to take into account before you even think about which lender to approach.

Those with a poor credit score or any ‘out of the norm’ circumstances will be considered, and second charge mortgage lenders will consider applications, where a traditional lender wouldn’t.

With lots to take into account, it’s recommended you seek advice on the best option for your customer, Clever Lending can help you with this.

What are the charges on a second charge mortgage?

The usual fees are a valuation fee, legal fees and the lender may charge an application or arrangement fee to cover the costs of setting up the loan.  Early repayment charges can be payable if you repay the loan early.

We offer two options with our fee structure, either added to the loan or paid on application.  Please contact us to discuss further.

What interest is payable?

Second charge mortgage interest rates are higher than those charge on a traditional mortgage as the second charge sits after the first charge.  As it’s therefore classed as a greater risk for the lender the interest rate is higher.  Also, whilst secured loan terms can be up to 35 years, some people look to consolidate them once the first charge mortgage product terms end, say a 5-year fixed rate.

How can I repay a second charge mortgage?

Just as with a first charge repayment mortgage, you will pay monthly payments each month that consists of capital and interest, each payment will reduce the balance owed.

You can pay the secured loan till the end of the full term and the balance is zero or use a lump sum to pay it, from say a house sale or remortgage.

Advised or packaged only

Clever Lending can offer you two options of service, whilst keeping you informed through the process.

  • Advised – Clever Lending will advise your customer, completing the fact find, research, presentation, suitability letter, application and processing to completion. Clever Lending will be responsible for the advice given.
  • Packaged only – Clever Lending will provide you with quotations and KFIs, research the lender and provide the application form and process the case to completion. You will need to give and be responsible for your own advice.

Case Study

Can people take out a second mortgage to consolidate debt and carry out home improvements?

  • We can help people do just that. One customer was able to:
  • Secure a two-year fixed-rate second charge mortgage with no early repayment charges
  • Consolidate £35,000 of debt with various lenders
  • Carry out home improvements
  • Halve his monthly financial commitment

Customer story

This customer approached us as he wanted to consolidate his outstanding debt and raise additional funds to carry out home improvements. His existing repayments for his £35,000 worth of debt with various lenders added up to more than £1,000 every month.

He had been previously declined by a lender for the £67,800 required to settle his debts and carry out the works to his home.

We secured a two-year fixed-rate second charge mortgage with a lender for the full amount required. After consolidating his outstanding debt, the customer’s monthly commitment nearly halved.

Other Criteria and lending options

  • Loans up to £1 million
  • Terms up to 35 years
  • Fixed-rate options up to 10 years
  • Standard Loan to value 95% (up to 120% available)
  • Employed and self-employed
  • Pension income accepted as sole income
  • Benefits income accepted as sole income
  • Complex affordability cases considered
  • Unusual properties
  • No Early Repayment Charge options
  • Buy-to-let

Just a few great reasons to work with Clever Lending:

  • Personal service from a passionate team
  • Ability to find solutions – outside the box thinking
  • Positive outcomes
  • Multiple lending options
  • Extensive lender panel
  • Market-leading rates

Additional benefits:

  • 24-hour turnaround on DIPs
  • Competitive commission rates
  • Advice and recommendation or package only service

Our online broker portal Clever+ allows you to:

  • Submit an enquiry at any time from any device
  • Track all cases 24/7 in real-time
  • Upload documents with drag-and-drop faciality in a secure environment, which can be accessed quickly and easily

Register with Clever Lending and access Clever+ here

Call 0800 316 2224

Email enquiries@cleverlending.co.uk

Please click here for our submission form.