SECOND CHARGE MORTGAGES
Black Book can assist your Clients seeking a Second Charge Mortgage wherever appropriate, and always with a guarantee of no cross-selling.
Second Charge Mortgages come into play where a First Charge or Further Advance isn’t a viable option. This could be for many reasons, but here are a few examples:
- Client’s circumstances may not qualify for an increased First Charge.
- Client is self-employed and current lender has changed its lending criteria.
- Funds are needed more quickly than a First Charge could be arranged.
- The nature of the existing First Charge (e.g. competitive existing rate, or significant exit fees)
In all the above examples, a Second Charge option, often with more flexible lending criteria, would allow for the First Charge to remain entirely unaffected.
If your client is looking to raise funds, and already has a competitive first mortgage, and/or one that would carry significant exit penalties (if redeemed or altered), it is crucial to explore your client’s Second Charge options too. In terms of cost, the hefty exit charges of a first mortgage can often outweigh the higher pay rates that typically come with seconds – so a Second Charge can often be the more cost-effective option.
‘Debt Consolidation’ continues to be a popular use for Second Charges, but raised funds can also be used for almost any other purpose; paying the school fees, or tax bill, or for home improvements, or even financing a start-up business.
The Black Book Service
Under MCD rules, even if you do not carry Second Charge regulatory permissions, you are still required to explain to your clients that a Second Charge option might also be available to them, whenever appropriate.
For Intermediaries (with, or without, Second Charge permissions), Black Book offers a Client Advisory (Referred) service for Seconds, where we specifically advise your client only in regards to their Second Charge Mortgage options. Following receipt of the enquiry and full fact find exercise, we source and present the available solution/s from our comprehensive lender panel. Should your client decide to proceed, Black Book then packages and processes the application from the start, through to completion – with key case progress updates back to both you and your Client, along the way.
And at Black Book we don’t just rely on sourcing systems – we review and discuss each case with the relevant lenders and underwriters. As a result, you might be surprised to learn that we have access to Second Charge schemes which allow for:
- Just 2 months employed
- Just 6 months self-employed
- Credit Impaired
- 100% of additional income/s
- Borrowing for tax bills, transfer of equity, bridge exits, lease extensions, or business purposes.
- Up to 95% LTV (£30,000 maximum, at this LTV)
- No early repayment charges (including Fixed Rate products).
- Free, flexible and uncapped overpayments.
- Lending into retirement (using employed income, if still working post-retirement)
- Outside criteria Credit Scores converted into Accepts
- Automated systems with instant ‘accepts’ or ‘referrals’
The above list is of course non-exhaustive, but gives an idea of where we (and therefore you) can step up to assist Clients, even with more tricky requirements.
Black Book was built by highly experienced brokers, for brokers. Our team fully understands what it means to have an existing, or potential client that needs you for a service. We know that every case requires careful consideration & placement, followed by swift and efficient action, in order to see that case – and that client – through to a successful completion. Black Book will always strive to excel in this regard, on your behalf.
As one example, Black Book’s hours of operation are at least 2 hours later than most, for 4 days in every week – specifically so that your Clients can give this matter their necessary attention after they have finished their work for the day. We are open until 8pm (Mondays to Thursdays), and 6pm (Fridays).
As another example, Black Book always uses dedicated Couriers to collect signatures and/or required documentation at a time to suit your Client – which are then delivered directly to our processing department, so the case can progress as swiftly as possible. These kinds of service enhancements are designed to ensure an unmatched service for your Clients, every time.
Black Book Fees
Black Book charges a flat client fee of £995, payable only on completion. The client is only required to pay an upfront Valuation Fee where the property value is £500,000 or more, and only then when a full inspection report is required by the selected lender.
As a reminder, Black Book provides a ‘no cross-sell’ guarantee to all our registered Intermediaries.
Either call us on 0800 651 6511 or enquire online