Spotting Second Charge Mortgage opportunities
Ensuring your clients get what they need is paramount for any business or adviser. You want your clients to leave you, secure in the knowledge that you have got them the best product which meets their current needs. Providing this level of service can often be the catalyst to future business in the form of recommendations, customer retention and additional cross sales.
As EMCD is set to reshape the mortgage market in, we want to make you aware of where potential new opportunities lie for your clients and yourselves.
Remortgages and further advances have predominantly been the "go to" products for the majority of home owners seeking to raise funds for home improvements, consolidation, new vehicles and much more. With interest rates tracking so low for such a long time, low SVR mortgages and lifetime trackers have proven to be a fantastic product for consumers. This is where a wealth of opportunity sits, with these customers on these products. Their banks and building societies aren't keen for them to have these products any longer so when they approach them for more funds, it's now common practice for the lender to approve the funds on the condition that they remortgage onto a new product which will almost always result in an increase in rate and a huge hike in monthly repayments.
Is it TCF to recommend this to your clients when you potentially have an alternative product available in the form of a Second Charge Mortgage? The benefits of going down this route is that your client maintains their original mortgage at the fantastic rate and they have the opportunity now to borrow up to 95% LTV and yes the banks and building societies are happy to consent to this.
The same could be said about your clients remortgaging if they have hefty ERC's, could it be more cost effective for them to take a Second Charge Mortgage as opposed to paying those ERC's and new set up/arrangement fees?
Are recent credit issues including IVA's and debt management plans preventing your clients from remortgaging? We deal with all kinds of adverse credit, contact us if you are unsure as to what can be accepted.
Second Charge Mortgages are flexible and have the option of allowing your clients to overpay and settle early if this is what they want to do.
Traditional funding is often restrictive in terms of "the loan purpose," Second Charge Mortgages can be used for numerous purposes, e.g. to pay a tax bill, business purposes if your clients are looking for a cash injection or new equipment, to buy holiday homes or purchase freeholds and extend leases on properties, to state just a few.
Our extensive lender panel also allows your clients to use all of their income including BTL yield, foster care income, overtime and bonuses and if they are self-employed we can look to help them after just 6 months self-employment with projected income calculations.
Second Charge Mortgage opportunities are all around you, let us help you to identify them.
Freedom for Intermediaries is a trading style of Freedom Finance Limited registered in England and Wales. Company number 06297533. Freedom Finance Ltd is Authorised and Regulated by the Financial Conduct Authority. Registered office: Atlantic House, Atlas Business Park, Simonsway, Manchester, M22 5PR. VAT Registration Number: 156 0324 34 Copyright © 2010-2015 Freedom Finance Limited. All rights reserved. Reproduction in whole or in part without permission is prohibited. Calls may be recorded for training and monitoring purposes.