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.

Bridging loans – The Facts

Bridging finance loans are short term finance to ‘bridge’ the gap until the main finance is available, such as a term mortgage or the property is sold, following say a renovation.

Bridging loans normally run from a minimum 1 month to a maximum of 24 months and borrowing limits ranging from £50,000 up to many millions.  There are also specialist buy to let bridge products.

Why a bridging loan?    

A bridging loan is multipurpose and has a variety of uses, with lending based on the property, borrowers experience and plan for the property, it means lenders don’t tend to look at a customer’s income and credit profile.  Although it’s important to note, if a new term mortgage is required on exit, that is likely subject to full lender credit checks.

Most popular uses of a bridging loan

  • Securing a property before completing the sale of your existing property
  • Broken sale chains – bridging the gap between purchases
  • Auction purchases – quick completion timescales
  • Renovation – a traditional mortgage may not be available until the works are complete.
  • Below market value – enabling you to possibly take advantage of the open market value of the property
  • Un-mortgageable properties, for example if there’s no kitchen or bathroom
  • Refurbishment projects to sell or let
  • Change of use – if changing the purpose of a building

Will I qualify for a bridging loan?

The loan amount is based on the loan to value ratio (LTV) from properties current or estimated future value, if renovating.  Most bridge lenders will lend up to 75% of the value, but there are some that will stretch this to 85%. (pre COVID-19)

Bridging loans can be regulated or unregulated depending on the use of the property, unregulated bridging means it’s not governed by the Financial Conduct Authority (FCA).  It’s always important that you are made aware of the full terms, all fees, charges and conditions of the loan, whether its regulated or not.

Key factors considered by lenders are the:

  • Subject property
  • Loan-to-value
  • Project plans
  • Exit plan (how to repay the loan, such as term mortgage or sale)

What are the charges on a bridging loan?

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.  There can also be fees if you need to extend the term of the bridge.  Its therefore very important that you fully plan your project to avoid unnecessary fees.  A specialist packager like Clever Lending, will also charge a fee and can help you to ensure you have the correct finance in place.

What interest is payable?

Bridging loan interest rates are set by considering the property value, size of loan, loan to value (LTV), use of property, condition and location and are usually chargeable on a month basis, instead of the traditional mortgage annual rate.

Due to the slight increase in risk with bridging and the short-term nature, lenders charge slightly higher rates compared to a traditional mortgage.

How can I repay a bridging loan?

With bridging loans, interest and payments can be retained, rolled up or serviced, the difference being retained and rolled up, means you make no payments each month and instead they are added to the balance.

With serviced, you make the interest payments each month and therefore the remaining balance on exit is the original amount borrowed.

The beauty of a bridge is you can have no monthly payments, using those funds as cash flow during the project and reap the benefits with a quicker sale or say, rental income.

Can people with bad credit and take out a bridging loan?

We help people do just that. One customer was able to:

  • Secure a bridging loan of almost £600,000 over a 12-month term to improve his financial situation
  • Receive the required funding on the same day
  • Sell his property to buy a smaller home and pay back his arrears to the original lender

Criteria

Clever Lending’s product range covers several key requirements, such as:

  • 100% LTV available with additional security
  • Market-leading rates
  • Terms from 1 month to 24 months (longer on buy-to-let)
  • No exit fee options
  • Staged released payments
  • Auction purchases
  • Second and third charge
  • Monthly payment or rolled up interest

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 (lenders systems allowing)
  • Competitive commission rates
  • Ability to deal with your client or package only

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

Contact us here or call  0800 316 2224

Bridging the funding gap

Client story

The client had already purchased a share in a business and needed to buy the second share by a pre-set date. Her original funding plan had been delayed and needed to source the finance required before the looming deadline. As well as her main home, she also owned a holiday property.

Applying our insight

We reviewed this case and secured a bridging loan with a lender which has a strong reputation for being able to provide finance quickly. To speed things up even more, the lender advised it would be easier to carry out the bridge on the client’s holiday home.

The bridge completed quickly, and the client received her funds within the deadline, which allowed her to purchase the second share in the company. She was able to exit the bridge once her original source of funding came through.

What we said

As this client was being delayed by her original provider, we had to act quickly to make sure she didn’t miss out on being able to purchase her new business share. Our experience of working with so many lenders though meant we were able to approach the one we knew could complete the bridging loan within the set time. “Securing the bridge on the holiday property and having a clear exit plan meant the client received her funds and she now owns her desired second share.”

When bridging finance could be the best solution for your clients

Bridging finance can be used when a client is looking to:

  • Securing a property before completing the sale of your existing property
  • Broken sale chains – bridging the gap between purchases
  • Auction purchases – quick completion timescales
  • Renovation – a traditional mortgage may not be available until the works are complete.
  • Below market value – enabling you to possibly take advantage of the open market value of the property
  • Un-mortgageable properties, for example if there’s no kitchen or bathroom
  • Refurbishment projects to sell or let

More reasons to choose secured loans for your clients

Customer story

This case was sent to us by the broker as their clients wanted to consolidate £6,000 worth of existing unsecured debt and raise the funds needed to carry out home improvements. Mr D was self-employed, and Mrs D was in receipt of Working and Child Tax Credit, DLA and Child Benefit. The couple had already been refused a further advance by their existing mortgage lender.

Applying our insight

We reviewed this case, and because they’d been refused a further advance and a remortgage wasn’t a viable option, the broker wanted to look at a secured loan for the couple.

We used our expertise to approach a lender we knew that would accept Mrs D’s benefits as a source of income. After explaining how the couple would maintain payments once the benefits stop, the lender was happy to offer the required finance.

Clever were able to secure the couple a second charge loan of £35,000 over 22 years with monthly payments of £250. This was used to consolidate two credit cards which they were paying £200 towards them every month. The rest (£29,000) was put towards a new kitchen extension, to allow the family to grow, stay in the same house and increase the property’s value.

What we said

“We were really pleased to help this couple who are now essentially paying just an extra £50 a month for an additional £29,000, which has been used to improve their property and subsequently increase its value. “Our experience in helping people with various sources of income meant we were able to satisfy the lender this couple could afford the additional loan – even though they’d been previously been refused a further advance. This is a great example of how a second charge can benefit clients on so many different levels.

A second charge mortgage could be the solution for customers who:

  • Have an existing mortgage with a high early repayment charge
  • Want to retain a competitive rate on an existing mortgage
  • Have an interest-only first charge
  • May have a complex income
  • Require a high LTV
  • Have a poor credit profile
buy-to-let

New Year, new buy-to-let limited edition product range

Clever Lending brokers can kick-start the New Year for their landlord clients with Pepper Money’s new 5 year fixed rate buy-to-let limited edition range, with rates starting from 3.28%.

Limited Edition Range

The range features a special flat fee option, which is available for 3.28% up to 75% LTV and has a completion fee of £3,950.

There is also a range of 5 year fixed rate products with a 1% completion fee. These rates are available for:

  • 3.37% up to 65% LTV,
  • 3.47% up to 70% LTV,
  • 3.57% up to 75% LTV
  • 3.77% up to 80% LTV.

Delivering competitive buy-to-let solutions

James Blower, Marketing Director at Pepper Money, said: “At Pepper Money, we are always looking for ways to deliver competitive solutions to interesting cases and this limited edition is another example of identifying an opportunity for brokers to provide their clients with a better deal.

“Buy-to-let applications increasingly require bespoke assessment and now brokers can access mortgages with a flexible approach to individual underwriting and 5-year fixed rates available from just 3.28%. It’s a great way to kick-start the New Year for brokers and their landlord clients.”

Clever’s extensive product range

Sonny Gosai, Head of Specialist Lending at Clever Lending, said: “Pepper Money’s new limited edition includes a number of great options for landlords. We’re really pleased to be able to add these products to the already extensive range available to Clever Lending brokers via our panel of lenders.”

Find out more about the new buy-to-let limited edition products from Pepper Money and how it can help your landlord clients by contacting us on 0800 316 2224 or email enquiries@cleverlending.co.uk