Client need – A married couple living in Cambridgeshire wanted to do some home improvements and needed £8,000 for this work. In addition, they wanted to reduce their credit commitments if they could – as current monthly payments were £584. A CCJ for £5,080, which was registered against them three years earlier, was still unsatisfied and also needed cleared off too.
Solution – A loan from Optimum Credit, at an annual rate of 3.75% for 2 years, which was taken out over a 20-year period with monthly payments of £456. This reduced their monthly commitments by £128. The clients also received the £8,000 needed for the home improvements and managed to clear the CCJ.
Second Charge Mortgage
A second charge mortgage can only be arranged if you already own your own home and have an existing mortgage in place. (Hence why it is now called a ‘second charge’).
As an independent loan broker, the Lending Channel deal with a panel of lenders and search the market for the best deal on your behalf. A broker fee is charged for this service and is normally added to the value of the amount advanced, but you can pay any fees separately.
You will be made fully aware of any fees to be charged at the outset, and all enquiries are treated on a no obligation basis. All loan fees are usually added to the net loan facility leaving you with no upfront charges to pay.
Summary of criteria for second charge mortgages:
If you have landed on this page and you are not a direct client looking for a lending solution, perhaps you are interested in introducing business to us? If so, please either call for more details or follow the Introducers Link.
The Lending Channel are brokers, not a lender. We use a representative panel of lenders to source suitable lending solutions.
The Lending Channel are authorised and regulated by the Financial Conduct Authority. Firm Registration no. 626787.
A Debt Consolidation Loan can reduce your monthly credit charges significantly: it’s possible that this could fall by as much as 50% – but debt consolidation can affect your credit score, depending on the option you choose.
As an independent loan broker, we can advise on the options that apply in your personal circumstances and then assess the market to find a lender that is best for you.
It is likely that you will be charged a fee for our service, but that does depend on the type of facility you apply for and the solution we offer you. However, all enquiries are treated on a free, no obligation basis and you will be made fully aware of any fees to be charged before committing to any proposed route.
Fees can be added to the net loan facility, meaning that you would have no costs to cover immediately, if you decide to proceed. Alternatively, you can pay your fees separately.
We have a long, established history providing financial solutions to clients who may face challenging circumstances, and we offer tailored lending solutions to match your personal circumstances, so either telephone us now on 01738 583008 or complete the online enquiry to start the ball rolling. We can help even if you have a County Court Judgement (CCJ), IVA, existing debt management plan, or adverse credit history, including default on a payment or Trust Deed.
Here are the answers to some frequently asked questions about Debt Consolidation specifically.
1. How do Debt Consolidation loans work?
You reduce the monthly repayments considerably because you use a second charge mortgage (a form of secured loan) to consolidate your credit over a much longer period than is possible with an unsecured loan. This also allows you to borrow a much higher amount than is typical with an unsecured loan.
2. What is the maximum loan I could get?
Up to £2.5m on standard plans. Our loans are all subject to status, affordability and having sufficient equity in your property.
3. Will I still qualify if I don’t have a mortgage?
No. Unfortunately, our secured loans are all second charge mortgages, which require a first mortgage charge to be in place.
4. Can I get a loan if I have a poor credit rating and have been turned down elsewhere?
Yes, quite possibly, but this will ultimately be determined by how much equity you have in your property.
5. Are you the lender?
No, we are a national loan broker, based in Scotland but dealing with clients all over the UK. We will compare loans for you and select the product that best suits your needs and criteria.
6. Are you an independent company?
Yes, we are a small but growing family run business.
7. How long will my loan take to process?
Typically, it will take anywhere between two and four weeks, provided the initial paperwork is returned quickly.
8. Will I be charged a fee?
Usually you will be charged a fee, and some lenders also charge their own arrangement fees. All fees are usually added to the net loan facility and there are no upfront charges.