Banks have always had lending restrictions, but it seems that with time, these are only getting stricter and more rigorous. Long ago were the days that bank loans were simple to attain. As the banks continue to tighten their restrictions, people are left unsure of who to turn to.
Finance is still accessible, it’s just found outside the bank. The 2010’s saw a growth in non-bank lending to help clients get through tough times, meet mortgage payments, and in general, foster their financial growth. It’s now 2020, and the non-bank space is busier than ever.
As home owners and entrepreneurs are left unsure, mortgage advisers are under increasing pressure to think outside the square. This is where a second mortgage can assist.
Have you considered the value of the client-bank relationship?
When it comes to mortgages, it can be all too easy to stray from the bank when the going gets tough. But the truth is, your clients relationship with their bank is well worth maintaining.
The bank may have said no, but consider the downside of withdrawing your clients mortgage completely. The bottom line is, if your client already has a mortgage in place, upholding this relationship – in the long run – will provide for cheaper interest rates, a broader range of available products and an invaluable long-term partnership.
Remember, a second mortgage is as it sounds – a second mortgage – while the bank may not be able to help your client with finance, their relationship is crucial, so ensure to hold on to this. Once your client has broken that partnership it is often difficult to reinstate.
So what do you do if your client has been turned down by their bank?
Taking out a second mortgage with an experienced specialist second mortgage lender may be the way to go. It’s simple, flexible, short-term and more often than not cost-effective. It fosters the invaluable client-bank relationship – not to mention sprouts a new one.
So, lets see how a second mortgage can help your client…
The WHY: benefits of opting for a second mortgage
When it comes to business, relationships are key. Taking out a second mortgage with a reputable, experienced lender not only maintains relationships, but builds new ones.
Why else? Second mortgages are a flexible, short-term lending option that can help your client over the hump, without the added stress of starting from scratch. Not to mention avoiding unnecessary costs associated if your client were to refinance their entire mortgage to a non-bank first mortgage lender.
The WHEN: the best time to use a second mortgage
When the bank says no. Second mortgage lenders like Core Finance have the expertise to help you with your clients financial goals. More than this, our lending criteria is less rigid than the bank – helping you help your client get ahead.
When else? Your client might be in need of some funds to get them from A to B; to bridge a short-term gap – this is what we call bridging finance. A second mortgage can assist your client until they are in a position to be refinanced back to their bank.
Working capital is another example of this – say your client is in the process of setting up a business or growing an existing one; a second mortgage could act as a stopgap between starting out and being able to apply for a bank loan.
So if the bank has said no and you’re wondering when the best time is to opt for a second mortgage, the time is now.
The HOW: the process of taking out a second mortgage
It’s as simple as picking up the phone. Chat with a specialist second mortgage lender at Core Finance or send us an email.
When it comes to second mortgage lending, we’re experienced, we’re specialised and we’re proactive. We can help you help your client get ahead with their borrowings, all the while preserving their relationship with the bank.
To learn more about our second mortgage lending options, criteria and pricing browse our website, chat with one of our experts and start a new relationship today.
The RESULT: growth, networks and prosperity
Here at Core Finance, we have the building blocks to grow the foundation your client has already set up with the bank.
Think of your clients bank mortgage as the foundation of a building. They’re now searching for the building blocks to complete their building, and a second mortgage will assist in getting them there.
A second mortgage will not only help your client over the hump, but actually foster growth – both in wealth and relationships.
Don’t break your clients relationship with the bank. Partner with a reputable second mortgage lender today.