Remortgage business is continuing to thrive and there’s a growing number of solutions to help clients to refinance, even if they are in a difficult financial situation.
Remortgage figures hit their highest level in a decade last year and there continues to be high demand from clients who want to switch their homeloan, often choosing to release equity in the process. Lenders are responding to this demand with increasingly flexible solutions and there are now good remortgage options for clients who find themselves in a difficult financial situation.
We have partnered with a lender on a semi-exclusive remortgage product that can help clients to get out of just such a situation.
It’s available up to 85% LTV, there’s no minimum credit score and married applicants can choose to apply in sole name. The product can be used for debt consolidation or to raise funds for any other legal purpose, with the exception of gambling debt, bankruptcy or business start-up. And the flexible criteria make it a very accessible option for clients with a whole range of complex circumstances:
- Mail order and communications defaults can be ignored
- Credit card missed payments can be ignored as long as they are now up to date
- A maximum of 2 missed mortgage payments are allowed in the last 12 months and applicants can have up to 2 payments outstanding, as long as no payments have been missed in the last 3 months
- CCJs and defaults that are older than 12 months can be ignored as long as they total less than £15,000
- As long as earned income is at least £25,000, the lender can accept 100% of additional benefits if there is reason to believe they are sustainable.
The really interesting thing about this remortgage product, which makes it such a great tool to help clients out of a difficult situation, is that it is available as a 5-year fixed rate with NO ERCs. The rate at 85% LTV is 6.80%, but with no ERCs it can prove a useful solution for clients who want to establish a longer track record of clean credit history that can help them remortgage onto a lower rate 1 or 2 years down the line.
So, if you have clients who perhaps want to remortgage to consolidate debts or raise finance, but have recent adverse credit on their file, keep an open mind about the options that are open to them. With the help of a stepping stone product like this, you could help to get their finances in shape for the long term.
If you would like to discuss this product or any other ways that Brightstar can help your clients, ENQUIRE TODAY
FOR INTERMEDIARY USE ONLY AND NOT INTENDED FOR THE GENERAL PUBLIC