The client – introduced to The Loans Engine by Potters Bar-based brokerage, Property Finance Ltd – owned a multi-million pound property and was looking to release £750k from it in order to take part in an investment opportunity plus make improvements to their home.
The client’s first-charge mortgage was a lifetime tracker and the existing lender would not agree to a further advance, plus the adviser at Property Finance Ltd did not recommend disturbing the existing mortgage.
In accordance with the Mortgage Credit Directive, and second-charge mortgages being brought under MCOB, the adviser therefore explored other alternative finance opportunities and introduced the client to The Loans Engine in order to look at the options afforded by a second-charge loan.
The Loans Engine provided full advice to the client and recommended a 3.88% second-charge mortgage for the full £750k.
As one of the UK’s largest Master Brokers, The Loans Engine has a 29-year heritage and is responsible for one in 10 of all UK second-charge loans. Last year The Loans Engine announced it was scrapping its all-encompassing master broker fee and replacing it with the new £295 application fee.
Adrian Hills, Managing Director of Property Finance Ltd, commented:
“This deal was never going to work as a remortgage. I had secured an extremely attractive lifetime tracker deal for my client when I helped him to purchase his home a number of years ago and it made no sense to disturb this, plus the existing lender’s ‘computer said no’ to a further advance.
“So I gave the customer’s details to The Loans Engine and they did the rest, providing full advice. What surprised me most was the interest rate was only 3.88% for a second-charge, and the fact The Loans Engine only charged the customer a fee of £295 for a loan of this size. My client was delighted with the introduction and I’m confident that I’ll get more business from him in the future, not to mention referrals and recommendations.”
Ryan McGrath, Chief Executive at The Loans Engine, said:
“It’s really exciting to see a loan of this size go through, but I get just as excited when a £25k deal is completed. It’s all relative, and a small loan can be just as important and ‘life changing’ for some hard-working families.
“However, as with any mortgage of this size, it wasn’t without its challenges. And as you can imagine, this high-net worth client expected and demanded the very best service delivery. But this is the benefit of using an experienced master broker like ourselves. We looked across the market to find the best deal, and used our strong relationships with lenders to make sure the deal was impeccably packaged and completed in record time.
“The second-charge market is undergoing radical change – rates start from as low as 3.83%, with fees of only £295, flexible criteria and underwriting; in that sense, the sector is in great shape to meet the needs of customers. Whether the applicant is a high-flying executive or a hard-working tradesman, a great outcome awaits.
“We are noticing a real shift in the level of intermediary activity. Seconds are not what they used to be, and it’s clear intermediaries are starting to recognise this.
“2017 is going to bring challenges and uncertainty for many but intermediaries now have a credible alternative finance option at their disposal, and are best placed to access the right solution to meet their client’s needs.
“As an adviser if you care about delivering great outcomes and great value for your customers, and you’re not involved in seconds, then you’re wasting an opportunity and it’s your clients who are losing out. Our advice is find a master broker you can trust and give seconds another look.”