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In the Spotlight with...
- In the Spotlight with Maeve Ward of Link Loans
- In the Spotlight with Simon Stern of Prestige Finance
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- In the Spotlight with Tony Quigley of the England Illegal Money Lending Team
- In the Spotlight with Lisa Muscroft of Norton Finance
- In the Spotlight with Matt Cottle of Y3S Group
- In the Spotlight with Simon Mules of Nemo Personal Finance
- In the Spotlight with Lucy Barrett of Vantage Finance
- In the Spotlight with Rob Derry of Brunel Mortgages
- In the Spotlight with Matt Tristram of Loans Warehouse
- In the Spotlight with Steve Walker of Promise Solutions
- In the Spotlight with Amy Smith of North Star Financial
- In the Spotlight with Danielle Lawrence of Pink Pig Loans
- In the Spotlight with Scott Thorpe of Carolina Capital
- In the Spotlight with Stephen Johnson of Shawbrook Bank
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Loan Doctor Archive
1:I have a client with £44,000 of unsecured debt including store cards, credit cards and £5,000 on an overdraft. He has a property worth £280,000 with £70,000 left to pay on his mortgage. He wants to take out a second charge loan to consolidate the debts. Could you give me some advice on how best to direct my client?
Wednesday 8th February 2012
Maeve Ward, Head of Sales at Shawbrook Bank says:
"If the customer has approached their Mortgage lender and been declined for a FA, or is currently tied into an ERC or on an attractive rate that would be altered by additional borrowing then a secured loan could be the answer. On the information provided below the client would qualify for our Platinum plan at a rate of 7.9%, Monthly payment £352.22 and APR 8.5% subject to all other underwriting criteria being met.
"All our products allow the flexibility to overpay either monthly or as a lump sum with no penalty and providing the customer provides us with 28 day’s notice they can redeem the loan at any point with only a £195.00 fee to pay."
2:I have a mortgage of £130,000 and my property is worth £160,000, can I get a secured loan against it? I have only been living in the property for one month, and have a very good credit rating. I want £22,000 to pay off credit/store cards and two loans over 25 years. My annual salary is £23500
Tuesday 31st May 2011James Rainbird, Managing Director of Pink Pig Loans says: "Unfortunately the maximum loan-to-value with our prime funder is 85% so this client would not be in a position to raise the required £22,000, this funder has a min loan advance of £7,500 so we couldn’t look to raise any funds for them via the secured loan route
3:We have recently re-paid in full a secured loan of £450,000. In doing so we paid the loan back, plus two months additional interest as a penalty for repaying early, as well as £8000 for cancelling the payment protection plan that went with the loan, as we no longer required it. After complaining, I have been offered a payment of £3000 as piecemeal from the bank. Essentially I have had to pay an additional £5000, on top of the loan and on top of the extra two months payment, for a facility I no longer needed just for paying this product off early. Is this an isolated case, or do all secured lenders charge additional payments such as the ones I incurred?
Tuesday 31st May 2011Rob Derry, Managing Director of Brunel Loans and Mortgages, says: "This case seems a little complex. I don’t think the loan doctor is the best person to ask, an insurance firm that deals with PPI would be able to give a more suitable answer."
4:“I’ve seen a secured loan advertised but the client may not need the loan for the entire term. What are the typical early repayment charges on secured loans and do these charges vary depending on how early the borrower repays?”
Thursday 7th April 2011Rob Derry, Managing Director of Brunel Loans and Mortgages, says: "As long as the loan is secured on the customer's main residence the early repayment charge will be no more than 2 months interest or this is normally waived if notice is given to the lender. The ERCs are set in statute and cannot vary."
For more information visit www.brunelmortgages.co.uk
5:The client is self employed and has income from a couple of different companies. Would my situation mean that I would be charged a higher APR?
Tuesday 5th April 2011Simon Stern, Director of Prestige Finance, says: "This is a difficult question to answer without having more information. The fact that this applicant is self-employed does not automatically mean that they will be charged a "higher APR". Aside from the type of employment, the rate will be determined by the LTV and whether there is any adverse credit e.g. Mortgage arrears or defaults. Once all the information is known a good broker will source the different loan products that are available and offer the client the most competitive rate."
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