One Size Doesn’t Fit all – Smaller Loans and Shorter Terms
In the second charge mortgage market the loan amounts are often assumed to be £50,000 and more with the loan term assumed to match that of the existing mortgage. However, this is not always the case. For example, United Trust Bank recently received an application from a Master Broker for a single applicant for a 5 year loan of £10,000.
With numerous mail order accounts and unsecured loan commitments, the borrower was looking for a way to simplify his financial outgoings, and reduce his monthly payments. He did not want to increase his existing mortgage as there was still a considerable term left to run so he met with his credit intermediary to discuss the options. The credit intermediary, who was an approved introducer for UTB, completed a fact-find and together they could see that by consolidating his current commitments into one more affordable payment each month for five years, he would reduce his monthly outgoings by over £100. The applicant also had the added comfort of knowing that his repayments would remain at a fixed amount for the entire term by taking a 5 year fixed rate product.
The application was submitted to UTB, allocated to an underwriter the same day and a binding offer was issued within a week. Offers are accepted by returning the original mortgage deed, which the customer did in time for the Bank to release the funds three days following the offer being issued.
UTB and the borrower’s introducer were pleased to meet the customer’s needs and take the pressure off his finances.
Term – 5 Years