First Charge Mortgages
- Government Help to Buy schemes
- Equity Release
- Capital Raising
- Debt Consolidation
- Non Standard Construction
- Divorce Settlement/Partner Buy-Out
- Large Mortgages
- Second Home Mortgages
Moving house or re-mortgaging can be a stressful experience. Recent market conditions have made finding a mortgage more difficult, especially if the property or your own personal circumstances fall outside of lenders standard criteria.
We work with a number of lenders who specialise in providing mortgage finance to people who find themselves in this position.
So no matter what the customer’s circumstances, we will look to find the most appropriate mortgage for the customer and manage the journey from initial enquiry all the way through to completion.
What is a second charge mortgage?
A second charge mortgage is the name given to an additional loan secured on a property where there is already a first mortgage charge in place.
Second charge mortgages are an established part of the mortgage lending market and they can provide additional funds for clients looking to raise capital for a wide variety of purposes.
New rules for second charge mortgage advisers
The Mortgage Credit Directive (MCD) is an EU framework of conduct rules for mortgage firms implemented by the Financial Conduct Authority (FCA) in the UK on 21 March 2016.
The MCD does not differentiate between first and second charge mortgages and as a result the regulation of second charge mortgages moved from the FCA’s consumer credit regime into the mortgage regime.
As a result the sale of second charge mortgages is aligned to that of firsts meaning that all sales have to be completed on an advisory basis and the compliance process provides the clients with additional protection than that received within the consumer credit regime.
Advisers are now required to recommend a product or products that are suitable for the client based on their assessment of their needs and circumstances.
Finding the right second charge mortgage for your client
The Equiniti Gateway sourcing functionality supports the sales process by providing detailed second charge mortgage illustrations. The underwriting team will also provide support and guidance regarding the documentation to advisers who wish to own the sales process through to completion of the loan.
An Unsecured Personal Loan is a personal loan whereby no security is required. The loan itself is not based on any of the customer’s assets and thus not secured against a customer’s home/any other property.
Like most loans the rate charged tends to be based on a customer’s financial circumstance, including affordability and credit history. In the majority of cases, the better a customer’s financial status the lower the interest rate they are likely to be offered. Equiniti Gateway has one of the largest panels of unsecured loan lenders in the UK to provide the most competitive rate to match a customer’s individual circumstances.
Our personal loan panel provides options for those with excellent credit statuses as well as for customers who may have more complex circumstances , for example, existing tenants or those with a poor credit history.
An unsecured personal loan is normally charged at a fixed rate meaning that a customer’s repayments stay the same throughout the term of the loan. The benefits of a fixed rates is so that a customer can match the amount they wish to borrow against how much they can afford to repay. As the payments stay the same a customer can then budget their outgoings each month.
If a lender’s rate is in fact variable (meaning that it can increase or decrease during the loan term) then this must be disclosed prior to a customer signing their agreement.
Our personal loans amounts range from £500 to £25,000 and can be used for virtually any purpose.
Guarantor Loans are aimed at customers with a less than perfect credit history.
A Guarantor Loan is a form of unsecured loan where the customer receives the money and makes the payments. However unlike a normal unsecured loan, the customer must provide a guarantor who will make the repayments in the event the customer is unable to.
A Guarantor is usually someone with a good credit history who is able to afford the loan payments and is usually (but not always) a homeowner. Lenders normally expect Guarantors to be homeowners, however loans are not secured against the Guarantor’s home.
It is important to note that if you are thinking of becoming a Guarantor please make sure that you can afford the monthly payments if the main borrower cannot. All Guarantors will be expected to make payments on the loan if the main applicant ever fails to make their payments on time. If the circumstances of the main borrower ever change and they can no longer afford to repay the loan, then the Guarantor will become liable for the full balance and regular payments. Guarantors should seek independent legal advice before agreeing to become a guarantor.