Case Study: Signed, sealed and delivered

 

Brunel Mortgages - Signed, sealed and delivered

 

Rob Derry, Managing Director of Brunel Mortgages, gave LoanTalk the inside scoop regarding one recent secured lending case...

 

We were approached by a broker recently who had a client that needed a loan for debt consolidation. They had some unsecured credit of around £25,000. This was costing nearly £750 a month to service.

The client is self-employed and their income had been squeezed during the recession. Business has started to pick up again. They had a low rate on their first mortgage and didn’t want to lose it by remortgaging. A few historic missed payments on other credit would have made this more difficult also.

 

We were able to arrange a loan to clear the unsecured credit and bring the monthly payment down to £407, saving nearly £350 a month. The loan was structured over ten years.

 

The broker supplied us with the client’s contact details and an outline of what was required and we took it from there. All the broker had to do was inform the client that he had asked us to help with the finance. Once the client had signed the credit agreement and sent all of the supporting information back, we arranged the valuation and had the money in the customer’s hands less than a week after they had signed the form. 

 

And then we paid the broker £1,250 essentially for passing a name and address to us. Plus we never cross-sell so the client remains the broker’s. 

 

For the broker and the customer the process is very straightforward. We do all of the work so they don’t have to. The advance copy of the credit agreement is sent to the client for them to see how much the loan will cost them. With the signature copy, there is a list of items we need returning. In the meantime, we are getting references, a valuation and all the other things needed to package a case from various sources but the client doesn’t see that. We are always just on the end of the phone if the customer needs any help with any of the documentation. 

 

Of course, there are no up-front costs to the client or broker. 

 

Now, with a dynamic market, criteria are getting more and more flexible and finance is certainly more readily available than in the first mortgage market.  

 

Our opinion, obviously, is that more brokers should be considering secured loans.

 

 

For further case studies see here: http://www.brunelmortgages.co.uk/case_studies.html

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