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New adverse credit secured loan lender launches with LTVs up to 100%

Secured loan lender Equifinance has launched a new secured lender subsidiary, Equifinance Plus, which lends to credit impaired borrowers.

Equifinance Plus aims to accommodate borrowers who have had mortgage arrears, defaults and county court judgements in the last 6 months of their financial history, with LTVs up to 100 per cent.

The annual rate of interest will be 39 per cent for borrowers with a clean credit history and 48 per cent for those with recent impairments on their record.

Loans are available for between 12 months and 60 months and the amounts range from between £1,500 and £5,000.

The lender has launched with packager Promise Solutions and its product will go live to four other packagers in the week commencing 25 March.

Promise Solutions managing director Steve Walker says “We are pleased to again be the first packager to bring a new lender to market. This was made possible primarily because we control the only loan sourcing system which supports the entire secured loan market and adding Equifinance Plus as a new lender was relatively simple.

“Brokers can now source accurate quotes from Equifinance Plus as well as every other lender in the sector and Promise can now provide Equifinance Plus written loan agreements and detailed information for brokers to discuss with their clients. We know that this is something brokers want.”

Although Equifinance Plus is a subsidiary of Equifinance, with both lenders sharing underwriting teams, both have entirely separate lines of funding.

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  • John Crescens 14th March 2013 at 3:19 pm

    For those of us with a long memory,a company called First National introduced a higher rate plan based on the maxim of a rate for the deal in 1980s.It was however very much a niche deal as I recall but nevertheless provided market with another option.

  • Chris Gardner 14th March 2013 at 3:13 pm

    I stand by what I said and how I said it.

    I say once again to those who claim that would not recommend this product on the grounds of price : Its priced according to its risk and that is how it should be.

    Many decent payers are being excluded from borrowing by overly stringent underwriting criteria and this prodcut MAY suit them. By all means dont recommend it, but frankly I for one wouldnt need a broker to recommend or otherwise the merits of this product.

    You cant keep complaining about the likes of wonga (excuse for assuming that you dont like wonga either) et al then also complain about products like these at a very reasonable APR.

    Also, there are lot of newbie brokers in the market who think that deals at 4% APR are the norm – they are not, we are in a ,low rate bubble and some people do need a reality check as to what is expensive and what is not.

    Like it or not, the margins of lending need to extend a lot further than they do right now if our economy is going to expand. At least companies like this are prepared to ‘have a go’. I would imagine every broker has deals in their bottom drawer that are good deals that should find a home but dont.

  • John Crescens 14th March 2013 at 3:03 pm

    For those of us with a long memory,a company called First National introduced a higher rate plan based on the maxim of a rate for the deal in 1980s.It was however very much a niche deal as I recall but nevertheless provided market with another option.

  • charlotte Dean 14th March 2013 at 1:54 pm

    @ Chris Gardner
    Erm, that is exactly my (btw- not “our”) point.

  • Chris Gardner 13th March 2013 at 10:42 pm

    At anon

    So what exactly is our point – comments should relate to the subject…

  • charlotte Dean 12th March 2013 at 4:02 pm

    @ Chris Gardner
    Completely disagree with your comments. Your respond to a comment you find patronising in a patronising manner yourself- how does that work? Plus (and clearly more importantly) “btw commenting ANON is cheap”- what on earth does it matter? I am Anon but not the ANON you respond to. Who cares? I think you are better suited to twitter.

  • paul mcgonigle 12th March 2013 at 1:02 pm

    Interesting piece. I for one would not recommend the product. If my client was clean and wanted £1500 to £5000 i would send them to the bank for an unsecured loan where they would attract the same sort of repayment over 3 years as they would with this product over 5 years. I think ANON has a point here. I also appreciate rate for risk but i dont see the selling value, i would not recommend the product.

  • Chris Gardner 11th March 2013 at 5:15 pm

    ANON | 11 Mar 2013 2:00 pm Your rant is just the kind of patronising rhetoric that keeps the reputation of brokers/IFAs in the gutter. Price for Risk is the way forward if financial services are to become inclusive and pandemographic. 39 or 40 APR is by no means expensive. It would be far more worrying if there was some ridiculous low rate then followed by a much higher rate – yes the kind you probably recommend all the time when your advise on virtually all mainstream lenders.

    btw commenting ANON is cheap.

  • ANON 11th March 2013 at 2:00 pm

    WHHHHAAAAAATTTTTT!!!!!!!??????? ‘The annual rate of interest will be 39 per cent for borrowers with a clean credit history and 48 per cent for those with recent impairments on their record.’ I thought we were supposed to be keeping our clients away from ‘loan sharks’ on what planet and in what circumstances is it ‘good advice’ to reccomend a client borrows at a rate of 39-48% NO client can be that desperate and NO self respecting qualified adviser should reccomend such extortinate high risk lending, sometimes you just have to say NO to the client, NO you can’t acheive what it is you want and frankly its for the best, go away and ‘save’ for a few years! Madness.

  • ANON 11th March 2013 at 1:59 pm

    WHHHHAAAAAATTTTTT!!!!!!!??????? ‘The annual rate of interest will be 39 per cent for borrowers with a clean credit history and 48 per cent for those with recent impairments on their record.’ I thought we were supposed to be keeping our clients away from ‘loan sharks’ on what planet and in what circumstances is it ‘good advice’ to reccomend a client borrows at a rate of 39-48% NO client can be that desperate and NO self respecting qualified adviser should reccomend such extortinate high risk lending, sometimes you just have to say NO to the client, NO you can’t acheive what it is you want and frankly its for the best, go away and ‘save’ for a few years! Madness.

  • Steve 11th March 2013 at 1:54 pm

    I hope there a few people out there who need this sort of arrangmeent, rates make the eyes water.

  • another packager 11th March 2013 at 1:44 pm

    but its a bit of a con advertising a new lender though. If Nemo add a new plan advertising a 95% product shall we call that a new lender too…..

  • another packager 11th March 2013 at 1:44 pm

    but its a bit of a con advertising a new lender though. If Nemo add a new plan advertising a 95% product shall we call that a new lender too…..