The loan for £30,000 paid out with second-charge lender, Prestige Finance, at a rate of 4.45% and only cost the customer £295 in fees.
This represents a fee-saving of more than 90% against traditional master broker fee models, where a customer could have expected to pay circa-£3,000 for a similar loan.
The customer was working to a tight deadline but it took just four working days to arrange the loan, after they were introduced to The Loans Engine last Wednesday. The binding offer was issued on Friday and funds were placed in the customer’s bank account first thing yesterday morning.
Last month The Loans Engine announced it was scrapping its all-encompassing master broker fee and replacing it with the new £295 application fee.
Dan Miller, Underwriting Manager of Prestige Finance, commented:
“We have a long-standing relationship with The Loans Engine and are delighted to be the first lender to complete a loan under its new fee structure. The quality of packaging by The Loans Engine ensured a smooth and efficient application process through to completion.”
Steve Harness, Commercial Director of The Loans Engine, said:
“Intermediaries tell us how frustrating the first-charge further advance process can be, and that remortgage just isn’t right for many clients. Now with broker fees of only £295, low interest rates and completion timescales under a week, second charges are a credible alternative which deliver great customer outcomes.”
As one of the UK’s largest Master Brokers, The Loans Engine has a 28-year heritage and is responsible for one in 10 of all UK second-charge loans.