Delivering Quick, Reliable Second Charge Solutions for Advisers
In November, our clients, Jamie & Nicola, needed a fast and affordable way to consolidate their debts and fund home improvements.
October and November are traditionally busy months for us, however the market has been near impossible to predict this year. The Bank of England holding the base rate last week, after also holding it in September following 14 consecutive rises, has helped promote more confidence from borrowers and lenders alike and wash away the volatility we had seen for much of 2023.
A number of our key lending partners reduced their rates at the start of October whilst others refined their products to reflect the changes they have seen in the market of late.
Now is therefore the best time so far this year to investigate the market as residential affordability has hit many quite hard and there are definite occasions where we can deliver more in terms of loan size at competitive rates. On the other side of the coin, quite often, clients want to preserve their low rate first charge with their existing lender and avoid ERCs. So, a second charge is the perfect fit for many right now.
Since the outset of 2023, pure debt consolidation loans have accounted for 40% of the second charges completed by TLP and 38% of the total gross loan amount lent for our clients and their brokers. Compared to last year where pure debt consolidation accounted for 35% of the second charges completed by TLP and 34% of total gross loan amount lent.
Ok, there are a fair chunk of other reasons why we turn to our lenders. In response not only have we grown the team to ensure our service levels remain high, we have also streamlined our internal processes to ensure we can deliver results quicker and easier. With closing in on 10 top-notch second charge brokers, who all know their equitable charges from their deeds of postponements, we’re able to support more clients and introducers with any number of reasons and requirements to lend, often where the first charge market has failed or even felt defunct. We’ve even recently been able to go from enquiry to completion in less than three days.
If your clients are in need of a little support, we’re here, we’re ready. And don’t forget that we split earnings straight down the middle. So even one case every couple of months can very much help you to help your clients.
We’re finally seeing lenders stabilise their rates – HURRAY! After months of hikes and uncertainty, we are now seeing rate stability, starting from 7.208% for a second charge and 0.48% for bridging finance. We also have some industry exclusives that we can give you access to, just give us a call to find out the latest deals we have.
At TLP we have access to a wide range of lenders including West One Loans, United Trust Bank and Selina Finance. This year we have also welcomed major players in the specialist market, Octane Capital and Octopus Real Estate to our cohort. Two specialist lenders that we are looking forward to increasing volumes and strengthening our relationships with.
Over recent months we have been focusing on streamlining and perfecting our processes internally at TLP. One such initiative has been to implement a new two tier approach to our process which was quite a culture shift for us. It has allowed our advisors and customer account managers the time to focus their attention on their specific field of expertise and meant a marked reduction in the time it takes from initial enquiry to completion, in other words everyone is playing the game that they are best at within the business. Developing, evolving and improving is a big part of what TLP is all about.
We have been working closely with a number of introducers and lenders in the industry exchanging ideas and developing strategies for best practice and looking at ways to increase market share. For me, this is one of the best things that has come out of this challenging year, lenders and brokers working together to provide a bigger and better market for all.
As we are sure you will have noticed, things are looking a little different. After a few months of hard work, we’re so proud to finally unveil TLP’s new look and shiny new website.
Everything in our business is designed to support our borrowers, introducers and brokers, so it was time for ‘out with the old’ boring website and ‘in with this colourful new one’, which I hope delivers more of the information you need to help you help keep your clients happy.
We love it and we hope you do too.
Talking of the team, we’re thrilled to have welcomed several new faces over the last year including advisor Wahid and packager Brooke who joined us just last month.Check out the rest of our hard-hitting team here:
In November, our clients, Jamie & Nicola, needed a fast and affordable way to consolidate their debts and fund home improvements.
An introducer referred a client who had originally taken out a secured loan for home improvements. Unfortunately, overspend on the project meant they had accumulated a further £50,000 of unsecured debt, leading to high monthly outgoings and significant cashflow pressure.
Here’s how we helped a couple consolidate £30K from a DMP with a flexible, no ERC loan—giving them a clear path to remortgage and rebuild their finances.