The types of personal loans that we arranges are as follows: (Please note we do not arrange unsecured personal loans or credit cards):

• Residential Mortgages
• Secured Loans/2nd Charge Loans
• Bridging Finance
• Buy to Let Mortgages
• Equity Release Mortgages
• Lifetime Mortgages
• Home Reversion Schemes

This is a loan that is taken out to buy or refinance your home and is secured against it. Residential mortgages usually offer the lowest interest rate when compared with other personal lending as the lender has the security of your home if you default. As we are not tied or affiliated to any one lender, we search the whole of the market place to identify the most appropriate mortgage for your circumstances.

These are loans secured against your residential property, but after your main mortgage. Therefore as the risk to the lender is greater, a higher interest rate is charged – which can be more than twice that which is charged on a residential mortgage. There are usually high Early Repayment Charges associated with these types of loans, usually for the first 5 years, but again this can be longer.

Below are examples of when these loans may be suitable:

• When additional funds are required and there is a large redemption penalty on the main mortgage.

• If funds are required urgently and the existing mortgage lender is unable to support you.

• Where the main mortgage is on a much lower rate than would now be able to achieved and the additional amount required is
   relatively small when compared to the main mortgage

Bridging Finance is usually used when money is required to purchase one property whilst waiting for another to be sold. For example imagine you were moving jobs and you had committed to purchase a house in the new area. Unfortunately at the last minute the buyer of the house you are selling decides not to proceed with the purchase of your home. Whilst another buyer has been found for your home they are unable to purchase it for 4 weeks. Therefore a bridging loan is quickly arranged that will provide you with the money to proceed with the new purchase whilst still keeping your existing property (with any loan secured upon it). The equity in your existing property will then repay the bridging finance once it is sold.

Bridging Finance is an excellent type of loan to assist in these circumstances as it allows for a property purchase to proceed where it would otherwise have failed. Bridging Finance can be arranged very quickly – sometimes in a matter of days. However it does come at a price with rates of between 1 & 2% a month being charged depending on the security and whether it is an ‘open bridge’ or a ‘closed bridge’

An open bridge is when there is not a definite date for the sale of the existing home and the purchase of the new one.

A closed bridge is just the opposite of open bridge loan. In this case you apply for the loan after finalising the terms and conditions of the sale of your existing property. Therefore as there is a defined outcome the interest rate charged is lower.

Napoleon once said that Britain was a nation of Shopkeepers – today ‘Landlords’ may be a more accurate observation now. Over the last 10 years the ‘Buy to Let’ market has been very popular in the UK and a lot of people have recognised the benefits of purchasing a property as an investment, with the income received in rent helping to purchase the property.

And whilst this is more difficult to achieve than it was, due to the increase in property prices and interest rates, it is still a very vibrant market and good value rental properties can still be found.

There are many lenders now specialising in this market and there are various formula’s for calculating the maximum loan that can be achieved; there are also lenders that will fund a number of properties to allow a portfolio to be created. Please contact us if you require any further information on Buy to Let Mortgages.

Equity Release mortgages enable people to release capital from the value of their home for a variety of purposes. For example it may be to supplement income or to purchase a car.

Prior to an application being made for an equity release product we will make an assessment of the applicant’s financial situation in order to establish as to what financial benefits from the state or otherwise may be available. This is very important as this could mitigate the need for equity release at all.

If there are no benefits available, or the benefits were inadequate (please note that benefits could be forfeited if equity is released), we can provide you with details on the 2 types of Equity release schemes that are available. These are:

With a lifetime mortgage you take out a loan secured on your home. This mortgage may be:

• a home income plan;
• an interest-only mortgage;
• a roll-up mortgage (rolled up means interest is added to the loan, for example each year);

or

• a fixed repayment mortgage.

The mortgage is repaid from the proceeds of the sale of your home when you die, or if you
move out of it (perhaps into a care home) when the scheme will usually end and your
home will be sold.

With home reversion schemes all or part of the home is sold to a third party, normally a reversion company or an individual. In return they pay a cash lump sum and in some cases a regular income. The vendor can usually continue to live in the home for as long as they wish. The amount the vendor receives is likely to be considerably less than the market value of the home.

This provides a very brief overview of Equity Release schemes. For further information please contact us or see the FSA Factsheet – ‘Raising Money from your Home’

To understand the risks and features of a Lifetime mortgage ask for a personalised illustration.

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