Fluent unveils 90% LTV second charge loan

Fluent unveils 90% LTV second charge loan

A second charge loan with a loan-to-value of 90 per cent and an interest rate of 9 per cent is being offered through Fluent for Advisers, the second charge distributor.

Designed with lender 1st Stop Group, the loan will offer terms of between 24 months and 300 months.

Simon Moore, director at Fluent for Advisors, said it had taken nine months of work to come up with the product with 1st Stop.

"We have produced a product which allows borrowers to go up to 90 per cent LTV without having to pay a king’s ransom for the privilege," he said. 

"There are higher LTV products in the market already, but the increase in interest rates being charged between 85 per cent and 90 per cent for the same clients was significant.”

Alex Mollart chief executive of 1st Stop Group, said his firm had worked "extremely hard" to bring the offer to fruition with Fluent for Advisors.

Bob Riach, an IFA and mortgage specialist with Riach Financial Advisers, said: "A rate of 9 per cent still sounds high to me but if a client cannot get an advance off the existing lender the client may be prepared to pay a 9 per cent charge for a second mortgage."