This information is for professional intermediary use only and must not be distributed to potential customers.
Residential
Second Charge Mortgages
Secured Lending Against a Borrower’s Main Residence With an Existing Mortgage
Our second charge mortgages are designed to provide homeowners with alternative capital raising options without disturbing their existing mortgage arrangements.
With loan sizes up to £1m, these loans can be utilised for a wide range of purposes, from debt consolidation, home improvements, property purchases, supporting the 'Bank of Mum and Dad', and many more.
These products are often used by borrowers who require a secured loan that cannot be served through remortgaging or further advances with their first charge lender.
Platinum
Highlights
Highlights
- 2, 3 and 5-year Fixed Rates from 6.49%
- SVR trackers available without ERC's
- Interest Only Options available for up to 65% LTV
- Up to 85% LTV available
Features
- No credit scoring
- Loans up to £1,000,000 (subject to LTV restrictions)
- LTV's available up to 85%
- Maximum loan term up to 40 years
- Most legal loan purposes acceptable including Home Improvements, Debt Consolidation, Property Purchases, School Fees and releasing equity to help get family members onto the property ladder
- Minimum Age 21 with the loan term ending by age 85
- Available to employed, self employed and retired applicants
Criteria
- Employed, Retired and Self Employed applicants all acceptable (subject to minimum income requirements)
- Self Employed applicants - minimum trading history of 1 year required
- Employed applicants - a minimum of 3 months employment.
- Retired applicants – providing they can meet the minimum income threshold from private pension sources
- Maximum 6.5 times gross annual income
- Automated expenditure assessment
- Child-related benefits accepted for children up to the age of 12 (other benefits by referral)
- State Pension accepted
Acceptable Credit History
- Minimum 24 months mortgage history - no secured arrears in the last 24 months and account must be up to date
- No unsatisfied CCJ's or defaults over £500 in the last 24 months
- Unsecured arrears in the last 12 months provided there is not more than 2 months arrears on any item of unsecured credit and is up to date (NB Unsecured credit with balances under £500 not included for plan assessment purposes)
- No previous IVA/DMP/Bankruptcies or repossessions
- No payday loan activity in the last 24 months
- NB Explanations will be required for any items of credit which have not been conducted satisfactorily
Suitability
- Borrowers with a high street mortgage who require further borrowing
- Borrowers with good credit profiles whilst still allowing for the occasional payment blip
- Borrowers who want to take advantage of some of the lowest second charge rates available
- Borrowers who may need greater flexibility in obtaining larger loan sizes, for example, to fund significant home improvement projects or purchase an investment property/holiday home
- Borrowers who bought the property in their sole name and want to add their partner/spouse to the second charge loan application
- Borrowers who have recently completed a product transfer but now need to raise further finance
- Borrowers who do not want to disturb their existing mortgage terms eg benefitting from a low rate mortgage or have an interest only mortgage
- Borrowers who would incur early repayment charges by remortgaging
- Borrowers where the speed of completion is important to them which may not be achievable via a further advance
Prime Plus
Highlights
Highlights
- 2, 3 and 5-year Fixed Rates from 6.79%
- SVR trackers available without ERC's
- Interest Only Options available for up to 65% LTV
- Up to 85% LTV available
Features
- No Credit Scoring
- Loans up to £1,00,000 (subject to LTV restrictions)
- LTV's available up to 85%
- Maximum loan term up to 40 years
- Most legal loan purposes acceptable including Home Improvements, Debt Consolidation, Property Purchases, School Fees and releasing equity to help get family members onto the property ladder
- Minimum Age 21 with the loan term ending by age 85
- Available to employed, self employed and retired applicants
Criteria
- Employed, Retired and Self Employed applicants all acceptable (subject to minimum income requirements)
- Self Employed applicants - minimum trading history of 1 year required
- Employed applicants - a minimum of 3 months employment.
- Retired applicants – providing they can meet the minimum income threshold from private pension sources
- Automated expenditure assessment without LTI restrictions
- Child-related benefits accepted for children up to the age of 12 (other benefits by referral)
- State Pension accepted
Acceptable Credit History
- Minimum 12 months mortgage history – no secured arrears in the last 12 months and account must be up to date
- No unsatisfied CCJ's or defaults over £500 in the last 12 months
- Unsecured arrears in the last 12 months provided there is not more than 3 months arrears on any item of unsecured credit and is up to date, or being cleared by the mortgage advance (NB Unsecured credit with balances under £500 not included for plan assessment purposes)
- No previous Bankruptcies or repossessions
- No previous IVA/DMP in the last 36 months
- No payday loan activity in the last 12 months
- NB Explanations will be required for any items of credit which have not been conducted satisfactorily
Suitability
- Borrowers with a high street mortgage who require further borrowing
- Borrowers with good credit profiles whilst still allowing for the occasional payment slip
- Borrowers who may need greater flexibility in obtaining larger loan sizes, for example, to fund significant home improvement projects or purchase an investment property/holiday home
- Borrowers who bought the property in their sole name and want to add their partner/spouse to the second charge loan application
- Borrowers who have recently completed a product transfer but now need to raise further finance
- Borrowers who do not want to disturb their existing mortgage terms eg benefitting from a low rate mortgage or have an interest only mortgage
- Borrowers who would incur early repayment charges by remortgaging
- Borrrowers where the speed of completion is important to them which may not be achievable via a further advance
Prime
Highlights
Highlights
- 2, 3 and 5-year Fixed Rates from 7.39%
- SVR trackers available without ERC's
- Up to 80% LTV available
Features
- No Credit Scoring
- Loans up to £500,000 (subject to LTV restrictions)
- LTV'S available up to 80%
- Maximum loan term up to 40 years
- Most legal loan purposes acceptable including Home Improvements, Debt Consolidation, Property Purchases, School Fees and releasing equity to help get family members onto the property ladder
- Minimum Age 21 with the loan term ending by age 85
- Available to employed, self-employed and retired applicants
Criteria
- Employed, Retired and Self Employed applicants all acceptable (subject to minimum income requirements)
- Self Employed applicants - minimum trading history of 1 year required
- Employed applicants - a minimum of 3 months employment
- Retired applicants - providing they can meet the minimum income threshold from private pension sources
- Automated expenditure assessment without LTI restrictions
- Child-related benefits accepted for children up to the age of 12 (other benefits by referral)
- State Pension accepted
Acceptable Credit History
- Minimum 12 months mortgage history – 1 missed payment in the last 12 months on loans secured on the property (providing none in the last 6 months).
- Up to 1 unsatisfied CCJ’s and 1 unsatisfied default over £500 in the last 12 months (Individual CCJ's of £10K and over by referral)
- Unsecured arrears permitted when it is repaid with the loan proceeds
- No previous Bankruptcies or repossessions
- No discharged IVA/DMP in the last 24 months. Current IVA/ DMP within 24 months to be repaid with the loan proceeds. Other than debt consolidation, no further capital raising permitted
- No payday loan activity in the last 6 months
- NB Explanations will be required for any items of credit which have not been conducted satisfactorily
Suitability
- Borrowers with less than a perfect credit score or who may have experienced some historical credit issues
- Self Employed Borrowers
- Borrowers who are unable to obtain a mortgage due to LTI restrictions
- Borrowers who may need greater flexibility in obtaining larger loan sizes for example to fund significant home improvements or to purchase an investment property/holiday home
- Borrowers who bought the property in their sole name and want to add their partner/spouse to the second charge loan application
- Borrowers who have recently completed a product transfer but now need to raise further finance
- Borrowers with an interest only mortgage who do not wish to disturb their existing arrangements
- Borrowers who are benefitting from a preferential mortgage terms on their first charge
- Borrowers who would incur early repayment charges by remortgaging
- Borrowers where speed of completion is important to them which might not be achievable via a further advance
Near Prime
Highlights
Highlights
- 2, 3 and 5-year Fixed Rates from 8.39%
- SVR trackers available without ERC's
- Up to 75% LTV available
Features
- No Credit Scoring
- Loans up to £250,000 (subject to LTV restrictions)
- LTV'S available up to 75%
- Maximum loan term up to 40 years
- Most legal loan purposes acceptable including Repayment of IVA/DMP plans, home Improvements and debt consolidation
- Minimum Age 21 with the loan term ending by age 85
- Available to employed, self-employed and retired applicants
Criteria
- Minimum Income of £15,000 derived from main employment, self employment or private pension income
- Self employed applicants with a minimum 1 year trading history acceptable
- Employed applicants with a minimum of 3 months employment
- Retired applicants with a minimum income of £15,000 derived from private pension income acceptable
- Automated expenditure assessment without LTI restrictions
- Child related benefits accepted for children up to the age of 12 (other benefits by referral)
- State Pension accepted
Acceptable Credit History
- Minimum 12 months mortgage history – 2 missed payments in the last 12 months on loans secured on the property (providing none in the last 3 months).
- Up to 2 unsatisfied CCJ’s and 2 unsatisfied default over £500 in the last 12 months (Individual CCJ's of £10K and over by referral)
- Unsecured arrears permitted when it is repaid with the loan proceeds
- No previous repossessions
- Bankruptcies permitted when it is discharged 3 years ago
- No discharged IVA/DMP in the last 12 months
- Current DMP or IVA plans which have been conducted satisfactorily and are being repaid from the loan proceeds can be considered providing this is accompanied by a satisfactory explanation. Other than debt consolidation, no further capital raising permitted
- No payday loan activity in the last 3 months
- NB Explanations will be required for any items of credit which have not been conducted satisfactorily
Suitability
- Borrowers whose credit rating has been adversely impacted by a life event
- Borrowers who may have a current or previous IVA or DMP
- Self Employed Borrowers
- Borrowers who are unable to obtain a mortgage due to LTI restrictions
- Borrowers who bought the property in their sole name and want to add their partner/spouse to the second charge loan application
- Borrowers who have recently completed a product transfer but now need to raise further finance
- Borrowers with an interest only mortgage who do not wish to disturb their existing arrangements
- Borrowers who are benefitting from a preferential mortgage terms on their first charge
- Borrowers who would incur early repayment charges by remortgaging
- Borrowers where speed of completion is important to them which might not be achievable via a further advance
Let us help you get started
To talk to us about what we can do for you and your client or simply learn more about what West One has to offer, get in touch today.
