A second charge mortgage is a loan secured against a property, which ranks after the first charge mortgage. This route is often a good option if your client requires a sum of money but a remortgage or unsecured option is not the best solution. This could be due to early repayment charges (ERCs) on the first charge mortgage, an interest only first charge mortgage, affordability reasons, higher loan to value (LTV) or adverse credit. The funds can be used for any legal purpose, which includes debt consolidation, home improvements, property deposits or family events. The property acts as security against the loan which could be at risk if the client does not meet repayments. A second charge does not affect the existing mortgage on the property.
A second charge mortgage sits as second priority on a property in the event of repossession, the lender also allows higher loan to values, which puts them at greater risk. The more risk involved with the second charge compared to a first charge, is reflected in the rates. Also, clients with lower credit scores may be offered higher rates as they are seen as more of a high risk to lenders.
ERCs vary from lender-to-lender; some may require customers to give one month’s notice and others less than that, so it’s important for people check their loan terms and conditions. Some lenders also have a discharge fee, which covers the legal costs for removing the charge from the property. The cost is typically £195 but can vary from lender to lender.
For Second Charge Mortgages its currently £500,000
For Bridging Finance there is no maximum
For Commercial Finance there is no maximum
Yes, we can provide an indicative quote for you to present to your customers before we complete the relevant searches. Just contact us to discuss this or log into Clever+ and submit the details you have now – you can always provide more when you have them. If you haven’t registered with us yet, you can do so here in just a couple of minutes.
We consider all cases individually and most lenders on our panel will accept SA302s as proof of income if they don’t have an accountant or accountant certificate. SA302s can also be accepted if self-employed customers need their applications to be based on their most-recent income, rather than an average of the past two years.
YES! We can help customers in almost any situation, even if they have a less than perfect credit score. All enquiries are reviewed individually, and we will use our expertise to approach the lenders we know will consider each case. Even if your customers have had bad credit on previous finance, missed payments or are in a debt management plan for example, we will be able to find them the most suitable lending solution based on their needs.
Yes, we can arrange for a member of our business development team to spend time with you and your colleagues to talk to you more about second charge loans, identifying suitable leads, the products available and the positive impact this can have on your business. Contact us on 01476 518 725 to arrange for someone to come visit and discuss secured lending further.
Clever Lending FAQs
Clever Lending is a specialist packager and master broker which delivers second charge mortgages both residential and buy to let, along with more specialist buy to let mortgages, commercial mortgage and bridging finance. It is a trading style of Financial Makeover, which is part of the Totemic Group.
We have a comprehensive panel of lenders covering most of the market which provide access to over 500 lending products.
It’s easy and quick to register with Clever Lending. Simply go to the Clever+ registration page and fill in a few details and you will be registered straight away. This gives you access to our extensive product range and so much more!
Clever+ is our online broker portal which assists you by providing a smarter way of working. You can access case tracking 24/7 and submit your enquiries to us – saving you time.
You can submit all your enquiries by either call us, by email or using our online broker portal Clever+.
Clever+ allows you to:
- Submit an enquiry at any time from any device
- Track all cases 24/7 with real-time case-alerts by SMS messages and emails
- Upload documents so all information is saved in one secure place, which can be accessed quickly and easily
We take a flexible approach to ensure we provide support in a way that suits you. We can either work with you on a case or are happy to deal directly with the customer, including giving the advice when required. We will keep you up to date on how it progresses – whichever route you prefer.
You can track all your cases, ranging from simple enquiries to completed applications, by logging into Clever+. Your dashboard will display real-time information about all cases, including their status and you’ll also receive case alerts via SMS messages and emails as they progress.
It depends what type of loan your customer has applied for. A bridging loan for example can be turned around in just a few days, where as second charge mortgage take an average of 28 days to complete. You can help the process by providing as much information as you can when you first submit the enquiry. There are other external factors involved, but we will always work to complete your applications as smoothly and quickly as we can.
We offer a competitive commission structure which will be discussed with you when quote terms are provided. Commission is paid after deducting application costs, such as conducting credit and land searches, bankruptcy searches, references from first charge mortgage providers and valuations. Not every case needs all of these.
We offer two options with our fee structure:
Option 1 consists of a pay on application fee of only £495 for loans of any size – the client pays any subsequent fees and you can charge your own advice fee.
Option 2 is where a flat fee to loan is added on completion and we pay all other costs up front for properties valued up to £1m* – 50/50 split on all net income. The fee will never exceed £2,495 regardless of loan size.
*Further consideration will be taken before paying valuation costs on properties exceeding £1m.
For second charge mortgages we pay 24 hours following completion, for commercial and bridge, we pay once fees are received from the customer (if charge) and any payment from the lender.
We’re fully authorised and regulated by the Financial Conduct Authority which means that our dedicated compliance team ensure all the products we offer and processes we have in place meet regulatory requirements – taking the pressure away from you.