Case Study Archive

 

 

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

To contact us to discuss any cases see here: http://www.brunelmortgages.co.uk/contact_brunel.html 

Or complete an online application form here: http://www.brunelmortgages.co.uk/online_application.html

 

Blimey! Loans - How to get out of bankruptcy

 

Mr and Mrs Patel recently had quite a tricky case to place.

 

Mr Patel is 45 and a self employed builder. Mrs Patel is 39 and works as a dinner lady in the local comprehensive, which her two children also attend.

 
Mr Patel began to feel financially stretched in recent years, as the economy worsened and people were less willing to build. He managed to keep his business afloat through the worst of the recession, but when work still didn’t pick up Mr Patel eventually filed for bankruptcy a few months ago.
 He turned to blimey! loans and asked them to help him raise £20,000 to clear his bankruptcy. The loan was in joint names, but still very difficult to place. There are very few lenders who can help in this situation.
After blimey! initially had a referral approved in principle, they completed the deal with Blemain. The LTV was under 20 per cent, which helped to strengthen the Patels’ case.
The introducing broker received £750 for passing the case to blimey! loans and was delighted that blimey! managed to place such a complicated case.

 

For more information about blimey! loans visit www.blimeyloans.co.uk

 

 

Blimey! Loans - when a remortgage doesn't fit the bill

 

A few months ago, the Simpsons needed some extra cash to try to reduce their crippling monthly outgoings. They had had enough of paying £780 per month to service two credit cards and a secured loan that totalled £36,000 and had ten years remaining. But a re-mortgage wasn’t an option at the time, because they did not want to lose the current mortgage rate they were on or incur any early redemption charges.


The couple turned to a broker who soon realised that secured lending was the best option in this case. It meant that the Simpsons could get the funds they needed to reduce their monthly outgoings and then use a remortgage at a later stage to clear the secured loan.

 The broker approached blimey! loans, explaining the predicament. blimey! loans arranged a secured loan for £36000 over ten years with a repayment of £514.78 per month and an APR of 12.6%. This reduced their current outgoings by £265 per month, and the fact they didn’t have to borrow more money or extend their term meant they were both delighted with the result.

 

The introducing broker made £1183.50 for passing this case to blimey! loans.

 

 

For more information about Blimey loans visit www.blimeyloans.co.uk

 

 

Brunel Mortgages and Loans cater for a remortgage

Submitted by Rob Derry of Brunel Mortgages and Loans

 
We were recently approached by a broker looking for finance for a self-employed customer. They had been working in the catering trade for 12 years and had set up their own business in the same field a little over a year ago. They needed to raise £20k for some home improvements as their business was going well. They were turned down by many first charge lenders for a remortgage because they did not have accounts for their new business.
 
We were able to arrange a secured loan based on income proof of 3 months bank statements.
We, as the master broker, took all of the risk and cost of the valuation, references and other processing costs. The introducing broker earned £1,000 on completion. The customer now has the ability to re-mortgage at any time in the future when their accounts are available to satisfy first charge lenders with no Early Repayment Charges. Also, the broker has an opportunity to earn again on the remortgage.
 

Blimey! Loans solve inheritance case

We had a broker pass a deal to us where his client was inheriting a property after his mother had died.
 
The problem was that there was no will and there was also an outstanding mortgage on the property.
 
The client tried to raise the money via a traditional mortgage but was unsuccessful due to adverse credit and it was then that the deal was passed to Blimey! Loans.
 
The only way the client could get the house transferred into his name only was to raise the cash to repay the outstanding mortgage. A secured loan also wasn’t an option due to the adverse credit history.
 
As specialist finance brokers, Blimey! Loans considered all the options and decided a bridging loan was the only option available and after searching the market for a suitable bridging company decided to use a company called Goldcrest.
 
The bridging loan was completed and the property is now transferred into the client’s name which left the client and the broker extremely happy.
 
Blimey! Loans paid £600 to the introducing broker for passing the case to us.