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NEW GROUND-BREAKING SECOND CHARGE MORTGAGE PRODUCT

THIS PRODUCT IS AVAILABLE VIA A VERY LIMITED NUMBER OF PARTNERS, INCLUDING BRIGHTSTAR. IT IS NOT AVAILABLE ON A DIRECT-TO-LENDER BASIS.

Brightstar now has access to a GROUND-BREAKING second / third charge mortgage product that works like an overdraft!

How does it work?

This new and innovative product allows borrowers to access a flexible, pre-approved credit limit from £25k to £1m, to be used as a revolving credit facility for an initial period of 5-years.

Your client can make an initial drawdown, and then subsequent, fee free drawdowns in as many tranches as they wish, for a period of 5-years.  The borrower only pays capital & interest on the amount drawn down and also has the ability to pay all or part of facility back and withdraw it again at a later date if required.

At the end of the initial 5-year term, the outstanding balance then converts to a traditional standard second / third charge mortgage over the remaining term.

 

Which client scenarios does this work for?

The product can be used for any legal purpose but we think it could be particularly useful for:

  • Portfolio landlords: Your client may wish to secure funds to take to a property auction, or have the flexibility to purchase new investment properties over the next couple of years.  It could be that their portfolio is highly geared but there is available equity in their home.  This product enables your client to draw down when needed and only pay interest on the funds that they use, rather than maximising the equity on their home and paying interest on the full amount from day one.
  • Property developers: Similar to how a portfolio landlord may use this facility, but if the developer flips a renovated property rather than retaining it for rental gain, they have the option of repaying some or all of the facility and drawing further funds for the next project when the need arises.
  • Home improvement projects: Your client may wish to pay for the initial cost of the materials day one, then draw additional funds to pay contractors as and when they are due, with the comfort of a having extra funds available, if needed for unforseen costs further down the line – something that nearly always happens with these projects.
  • School fees: School fees need to be sustainable so this product can offer your client the peace of mind that guaranteed funds are in place. Your client can ensure fees are paid when they are due, but only pay the interest when the funds are used.
  • Multi-purpose: This may include any of the above scenarios plus on or more of the following: helping a family member onto the property ladder / other family gifts / BTL investment / second/holiday home purchase / high value purchases such as a car/caravan/surgery) / high value purchases such as car/caravan/surgery / business purposes or tax bill planning.

 

Product features and highlights:

  • Up to 75% LTV secured on a main residence, second / holiday home.
  • Rates from 4.45% – interest only paid on what is drawn down.
  • Up to 6 x LTI.
  • Hometrack up to 75% LTV + no restriction on loan size.
  • No ERCS on any products and no lender fee options available.  In fact, the client can repay full or part of any advances, at any time. 
  • This is a prime product but some minor credit blips may be considered.
  • Up to 30-year terms.
  • Advances of £25k to £1m.
  • 3rd charges available up to 75% LTV.
  • Available in England, Scotland and Wales.

 

IF YOU WOULD LIKE A ONE-TO-ONE ZOOM/CALL TO LEARN MORE,

EMAIL US AT: MARKETING@BRIGHTSTARHUB.CO.UK

 

TO DISCUSS AN ENQUIRY, CALL OUR AWARD-WINNING TEAM ON 01277 508 959

 

FOR INTERMEDIARIES ONLY