Issue 5 Dec that will allow you to complete more business and increase your income.

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1 BRIDGING WATCH HOW THE MARKET HAS CHANGED AND HOW YOU CAN NOW USE BRIDGING FINANCE IN EVERYDAY SCENARIOS...PAGE 2 Issue 5 Dec 2013 HOW TO EARN MORE FROM YOUR SECURED LOAN ENQUIRIES WITHOUT ANY EFFORT...PAGE 4 PRODUCT SPOTLIGHT INTERBAY S BUY TO LET WITH JUST 110% RENTAL COVER CALCULATION...PAGE 6 ADDRESSING THE SPECIALIST FINANCIAL NEEDS OF YOUR CLIENTS Welcome to the December 2013 issue of Financial Focus from Specialist Financial Services, the UK s premier provider of non-regulated finance products. Helping your clients to achieve their financial goals Inside this edition.. you will find details of the new second charge products from Prestige Finance, Masthaven Secured Loans and StepOne Finance. We will show you how you can turn more of your mortgage declines into satisfactory outcomes for your clients and earn an excellent income for no effort. Our product spotlight this month falls upon InterBay s Buy to Let and HMO product. Specialist Financial Services is one of the UK s few Key Partners of InterBay and can give you access to residential and commercial mortgage products Financial that will allow you to complete more business and increase your income. InterBay s key selling point, other than excellent service and very low rates, is a rental requirement from just 110% without any loading. More on pages 5 and 6. We have also included our Xmas opening hours, a focus on our Operations Manager at Specialist Financial Services and details of our much copied Commission Payment Promise. Welcome to Financial Focus... focus Also inside On page 3. The latest Short Term Bridging loan products from Shawbrook Bank and Dragonfly Property Finance

2 Making the most of short term bridging finance CASE STUDY Formerly a product of last resort, the credit crunch has seen bridging become mainstream Before the credit crunch you would find that most professional finance intermediaries would not touch bridging finance with a barge pole. Expensive, inflexible and often seen as lending of last resort for customers staving off repossession proceedings or as a last minute chain-breaker, it was the product only looked at in desperate situations. The credit crunch then hit and we saw many bridging lenders go bust. But from early 2010 a new breed of bridging lenders emerged. The likes of Drawbridge Finance (subsequently renamed Dragonfly Property Finance), Shawbrook Bank, Precise Mortgages and Omni Capital launched exciting new products, the likes of which had never been seen before in bridging loans. AUCTION FINANCE? Call the experts An auction purchase can often allow your client to purchase an absolute bargain. With the requirement for the purchase to take place within 28 days of the auction, a bridging loan is often the best way to achieve this, especially if the property needs repairs or complete refurbishment. Specialist Bridging Finance can help your client in so many ways when they are looking to purchase at auction. If their bid is successful and your client needs help to raise the 10% deposit that is immediately due, we can usually help. we hope Shawbrook is helping to bring back some positivity to the intermediary market STEPHEN JOHNSON, MD AT SHAWBROOK BANK Call us free on With rates from just 0.65% per month and the flexibility of interest added to the advance or paid monthly, short term bridging loans have become a popular choice for property investors and speculators. We have even used bridging finance to help HNW clients purchase classic cars and RAF WW2 medals at auction Call our short term lending division today for details of what s on offer or visit We can also obtain approval from a lender before they attend the auction, subject to valuation, allowing them to bid in confidence. Many of our lenders will use the Open Market Value rather than the purchase price in their lending assessment. Often this means a client will not have to find 25%-35% of the purchase price to complete the transaction, although most lenders will want to see some cash input from the client. This becomes especially important if the applicant subsequently wishes to refinance. One of our top business Introducer s passed details onto us of a High Net Worth Solicitor client, who was looking to raise funds to purchase a shop with two flats above at auction. The premises needed complete refurbishment to bring it up to rentable condition, but the project would be highly profitable for the client With just 28 days to complete the transaction, we quickly identified Shawbrook Bank s Short Term Refurbishment Loan as the most suitable product available. An interest rate of 0.83% per month was agreed and paperwork issued. Then we came up against the curse of the surveyor! Despite being aware of the urgency of the transaction, the surveyor took over three weeks from initial instruction to providing the signed report, which gave us less than 24 hours to complete. However, with the help of our friends at Shawbrook, funds were released with an hour to spare What your customers say Really professional, kept us updated at all times - quick & efficient Mr & Mrs G, 26/11/2013 Very happy with the overall experience. Always helpful when we contacted them and always called back with information when they said they would. Mr & Mrs L, 02/12/2013

3 PRODUCT FOCUS SHORT TERM FINANCE FROM 75,000 TO 10m Product Code Loan Size Max LTV (1) Pricing (discounts available (2)) <60% LTV 61-65% LTV 66-70% LTV Term Lender fee (discounts available**) Your proc fee STL1 Residential Up to 70% 65% for refinances 0.65% pm 7.05% above 3 month LIBOR 0.69% pm 7.53% above 3 month LIBOR STL2 Mixed Use STL3 STL4 Residential Refurb STL5 Mixed Use Refurb 75,000 to 10m+ Up to 65% 60% for refinances Up to 60% 55% for refinances Up to 70% 65% for refinances Up to 65% 60% for refinances 0.77% pm 8.5% above 3 month LIBOR 0.83% pm 9.15% above 3 month LIBOR N/A 0.73% pm 8.01% above 3 month LIBOR 0.83% pm 9.15% above 3 month LIBOR N/A N/A N/A Maximum 18 Maximum % (full fee added to advance & not included in LTV) 0.75% of gross loan (see our commission guarantee) (1) Lower of purchase price or market value (2) Discount available of 0.25% on either the arrangement fee or the interest rate PRODUCT FOCUS SHORT TERM FINANCE FROM 50,000 TO 50m Dragonfly is one of the real success stories in the new world of short term bridging finance. Established in early 2010, Dragonfly quickly became the market leader with their no-nonsense approach to lending and unlimited funding lines. Specialist Bridging Finance has an excellent and long standing relationship with Dragonfly, so contact us today for all your Short Term Bridging Finance requirements Product Loan size (3) Maximum LTP (1) Maximum LTV Pricing from (5) Max term ERC Min property value Your proc fee Residential FCA (2) Regulated 100,000 to 5m+ 80% 65% 0.85% pm 12 None 300,000 Residential Investment Property Refurbish Investment Property 50,000 to 50m 50,000 to 50m 85% 70% 85% 70% inc. costs 0.85% pm 1.15% pm 23 None 200, None 200, % of net Loan (see our commission guarantee) Bridging Loan 250,000 to 10m 60% (4) 60% (4) 1.20% pm 23 None 850,000 (1) Loan to Purchase Price for discounted transactions. The lower of LTP/LTV will be used (2) Introducer must be regulated by the FCA to offer mortgages (3) Larger loan sizes always considered (4) Based on bricks & mortar with benefit of vacant possession. LTV s may vary depending on security type (5) Lower rates considered for strong applications

4 PRODUCT FOCUS Prestige Finance is the longest established secured loan lender in the UK and since being acquired in 2012 the company has been part of One- Savings Bank plc. One Savings Bank originates from the Kent Reliance Building Society which operated as a mutual for over 150 years In March 2013 they launched a range of ground-breaking products that changed the second charge secured loan industry, including the lowest rates available for self employed applicants in the UK and subsequent enhancements provide very attractive criteria. Here s what Simon Stern, MD at Prestige had to say about us I have personally known Tony Sutton for far too many years than we both are prepared to admit to. Despite the many changes that have taken place in the secured loan industry, Tony has stuck to what he does best which is supporting the intermediary market, whilst looking to offer the lowest and best priced product to the borrower. He has surrounded himself with good quality and experienced staff and we look forward to continuing the excellent relationship we already have with Tony and his team. They deal exclusively with the professional secured loan intermediary sector and offer their products through a limited panel of introducers. This enables them to offer a tremendously high level of service to their broker partners and helps to keep their running costs and interest rates low. Specialist Financial Services is a long standing partner of Prestige Finance and we have an excellent working knowledge of their criteria and requirements - both published and non-published. If you have an enquiry on your desk, call us today free on to see what Prestige Finance can offer your customer. You will be pleasantly surprised! Plan PF1-PF2b PF3-PF6 PF7-PF9 LTV 70%-85% 70%-75% Up to 75% Annual rate Mortgage arrears CCJ s / Defaults Loan size 6.75% to 11.4% 0 in last 12 0 in last 12 10,000 to 100, %-12.5% 3 in last 12 3 in last 12 10,000 to 100, % to 9.4% 0 in last 12 0 in last ,000 to 2,500,000 Proc fee * 4% 4% Please call * for loans up to 50,000. Call us for loans over 50,000 HOW TO EARN MORE FROM SECURED LOANS The secured loan market has experienced massive growth in 2013, with many new lenders entering the market and existing lenders constantly improving their terms. So how do you choose which specialist secured loan broker to place your business with? You could opt for the broker offering you most of their income, but common sense would tell you that they will probably be out of business before the loan completes. Or of course they have found a way to rip you off. Or you could try one of the companies that wants you to spend half an hour inputting the case into their sourcing system. These only provide indicative terms something we can provide in a 30 second phone call. Often you will find the case will be declined or for the broker to pay you a small share of their income. We believe your time is more valuable than that. Or you can be offered 50% of our net income. However trying to find out what the net income will be is difficult. The UK's most transparent commission structure Our unique way of operating means that for loans up to 50,000, you will know before submitting the enquiry that you will earn a minimum of 4% of the net loan amount with no deduction for processing costs. And you can earn up to 9.5% commission in some cases if you wish. Our research shows that most introducers do not trust the commission split offered by other secured loan brokers. Whether it's a 50/50 net commission split or the frankly plain daft 75%/25% split after processing costs, how do you know how much you will earn? Beware of the Rip Offs We know some loan brokers inflate their processing costs by 200/ 300 to reduce the amount they pay their introducers. We also know some brokers charge extortionate completion fees and only pay you a small percentage of their income. With Specialist Financial Services you will earn at least 4% commission without the rip-offs. Our Commission Payment Promise If your customer s secured loan introduction completes before 2.30pm, we guarantee your commission will be in your bank later that day as long as we have your up to date bank details. Neither we nor any of our competitors in the secured loan market experience cash flow problems, so why would we make you wait 48 hours or in some cases even a week for your income? If you are currently placing business with someone else and they do not pay you on the day of completion, you need to ask them why. We have always worked this way and will always continue to do so. That s a promise. Our No Cross Selling Guarantee In addition to offering a world class service to you and your customer, we guarantee your client will remain your client. We do not offer FCA regulated first charge mortgages, protection or investment products. Our ethos is quite simple - you are our customer, not the applicant you pass on to us.

5 PRODUCT FOCUS PRODUCT FOCUS Owner Occupied Products Advances available to 100,000 Terms 3-25 years Minimum net loan 5,000 No credit scoring No income multiples used Adverse credit accepted LTV s available to 75% Rates recently down by up to 1% Owner Occupied Products Advances considered over 100k Maximum term 20 years Minimum loan 5,000 No credit scoring No income multiples used LTV s available to 95% Rates from just 8.9% p.a. Self employed to 85% LTV Buy to Let Loan Products Advances available to 80,000 Terms 3-25 years Minimum net loan 5,000 Minimum rental cover 120% ERC 4%/3%/2%/1% thereafter Interest Only available (10 yr max) LTV s available to 70% Rates from 10.25% p.a. Buy to Let Loan Products Advances considered over 100k Maximum term 15 years Minimum loan 5,000 No credit scoring Flexible rental cover ERC 3%/2%/1% LTV s available to 80% Rates from 11.9% PRECISE MORTGAGES ENTER SECURED LOAN MARKET The Precise Secured Loan proposition has market leading rates starting from 5.45% linked to the Bank of England Base Rate. Both Life Time Trackers and Fixed Rate products are available. The range of Prime and Near Prime plans are available for loans up to 1,000,000 with further product enhancements on the horizon. More details to follow. Call free visit COMMERCIAL MORTGAGES THAT CUT THROUGH THE RED TAPE With High Street Banks still so reluctant to lend to small businesses, what options are available to your client when looking to purchase / remortgage a commercial or mixed use property? And with an estimated 250billion of refinancing required by 2015, much of which is for customers that have mortgages with RBS, Nat-West, Bank of Scotland, Clydesdale Bank, Yorkshire Bank and many others, how can you help your customers with their often urgent needs and also earn an excellent income for yourself? The answer is InterBay and Specialist Finance. With advances from 50, million or more, incredibly low interest rates and the most flexible rental coverage requirements in the industry, InterBay has become THE lender that all commercial brokers would love to have on their panel. See the next page for product terms. Specialist Finance has been a Key Partner of InterBay since their launch in October We have developed a fantastic relationship with the staff and directors of InterBay and have become one of their top introducers in the last 12. Whether your client is a commercial property investor or runs a trading business from the premises, InterBay and Specialist Finance can offer both the products and world class service both you and your client demand.

6 PRODUCT SPOTLIGHT Buy to Let & HMO What makes InterBay different? Rental cover of 110% on residential investment property with no loading Interest Only for full term available Minimum term is 2 years, maximum is 30 years Individuals, Partnerships, LLP s, Ltd Companies, Trusts and SIPPS Rental cover with no loading PLAN Loan Size Margin by Max LTV (1) 55% 65% 70% 75% Lender fees Your Proc Fee Std BTL & HMO Std BTL & HMO 75, million 4.50% 4.65% 4.75% 4.85% 4.00% 4.25% 4.50% 4.75% 0.25% booking fee (payable upon acceptance of Formal Offer) 0.75% To 1.00% of net loan High Net Worth BTL & HMO (2) 750, million 4.00% 4.00% 4.25% 4.25% 1.45% arrangement fee (added to advance (3)) (see our commission guarantee) Standard & Semi PLAN Loan Size Margin by Max LTV (1) 55% 65% 70% 75% Lender fees Your Proc Fee Std Semi 75, % 5.00% 5.20% 5.50% Std Semi 10 million 4.95% 5.00% 5.00% 5.25% Std Std HNW (2) Semi HNW (2) Semi HNW (2) 75, % 5.50% 5.75% 6.25% 10 million 5.00% 5.25% 5.50% 6.00% 500, % 4.95% 5.20% - 20 million 4.95% 4.95% 4.95% - 500, % 5.25% 5.50% % booking fee (payable upon acceptance of Formal Offer) 1.45% arrangement fee (added to advance (3)) 0.75% To 1.00% of net loan (see our commission guarantee) HNW (2) 20 million 5.00% 5.00% 5.25% - (1) Margin is over 3 month LIBOR, currently 0.75% (2) Minimum net assets 1million (3) Excluded from LTV calculation

7 The Loan Ranger The blog from Tony Sutton, MD at Specialist Financial Services Pain in the arse words As I advance in years I find many of life's minor irritations more and more frustrating: Excessive and unnecessary regulation. Political correctness. The way the few remaining thick hairs on top of my head emigrate into my ears and up my nose when I'm sleeping. Surveyors. Ed Miliband's voice. Weathermen. Martin Lewis! But one particular irritation has gradually worsened over the years and is now aggravating the crap out of me. The curse of the password. I'm all for keeping our internet and bank accounts secure, but the number of different passwords we now have forced upon us is ridiculous. With so many providers now insisting we either use their unique password or forcing us to change it every few weeks, keeping on top of this is becoming impossible. I had a quick count up today and in the course of our daily business we have to use 43 unique passwords, most of which have to be changed regularly. Some companies insist we use their mixture of characters to form very secure passwords - so bloody secure I can't remember them. A company recently gave me a password 14 digits long and a mixture of letters (upper and lower case), numbers and characters. I often forget the names of my children, so how the hell am I supposed to remember F6g2&ZqU91/pE1 So what have I done to combat this? Well, a couple of ago I thought I was being clever by purchasing an App on my iphone, filling it with all my different login details and passwords. All was going swimmingly until IOS7 was downloaded and it completely erased all the data in the App. Probably a good thing, as I was having problems remembering the password to get into the App in the first place. So I am now back to my original storage method, which is to keep a frequently amended spreadsheet with all the login details and passwords locked away safely in my desk drawer. Now where did I put my keys? Tony Sutton is the owner of Specialist Financial Services and a number of other finance companies. He began his career within specialist financial services in 1983 and started his first specialist brokerage in He is known for his no nonsense approach to specialist finance and actively campaigns against the cowboy brokers that deliberately mislead the public. He regularly contributes his knowledge and expertise to financial publications and his regular blogs can be found at within the Learning Zone Call free visit CHRISTMAS OPENING HOURS 23rd December am-5.30pm 24th December am-3.30pm 25th December - closed 26th December - closed 27th December am-5.30pm 30th December am-5.30pm 31st December am-3.30pm We would like to wish all our valued business introducers and customers a very happy Christmas and a healthy and prosperous new year.

8 FOCUS ON Jackie Houguez-Simmons, Operations Manager at Specialist Financial Services Ltd Jackie joined us in September of this year and has already become a valued member of the team. Jackie s wealth of experience and knowledge reflects her time spent within the industry, having run her own successful brokerage for many years. This, together with her extensive marketing qualifications, means she is a welcome addition to the experienced team at Specialist Financial Services Ltd. Jackie brings both optimism and enthusiasm to the team and is a breath of fresh air. In Jackie s own words... After being out of the business for several years, I am very excited to be back in the market and feel it s a fantastic time to return to the industry. At Specialist Financial Services Ltd we offer a very simple product range that will compliment your current product offering. Unlike many of our competitors, we will not ask you do most of the work (unless you really want to), allowing you to concentrate on your core business. Our product range is split into four areas. Second Charge Secured Loans from Specialist Financial Services There have never been so many reasons why a secured loan can be considered more suitable than a remortgage. If your customer is looking to raise any amount over 10,000 and needs funds quickly with no up-front costs, then look no further than Specialist Financial Services. Rates start at just 5.4% p.a. and early settlement penalties are just one month s interest. Specialist Buy to Let Mortgages from Specialist Finance As we obtain our business on the recommendation of mortgage brokers and financial advisers, we don t offer the products you will find on mortgage sourcing systems. So if your client has an external income of 25,000 or more, does not fit within the usual 125% rental coverage requirement, has a freehold property split into flats or will just not be accepted by mainstream lenders, call us today. Mortgages from Specialist Finance If your clients still have problems with obtaining a commercial mortgage from their bank, we deal directly with the alternative lenders such as InterBay, Shawbrook Bank and Aldermore. If you have clients that are being asked by their bank to refinance their borrowings, we can operate very quickly to satisfy your client s needs. Short Term Bridging Finance from Specialist Bridging Finance We now have direct access to literally hundreds of short term finance products covering all kinds of scenarios, with interest rates from just 0.65% per month. Whether it s assisting a client in a residential property purchase or providing short term finance for a fully commercial property, we can help. Proud members of Tel: or Fax: or info@specialfinance.co.uk Address: 1st Floor, Audley House, Northbridge Road, Berkhamsted, Hertfordshire, HP4 1EH Specialist Financial Services, Specialist Finance and Specialist Bridging Finance are trading styles and trademarks of Specialist Financial Services Limited. Registered in England, No Registered office: 119 The Hub, 300 Kensal Road, London, W10 5BE. This newsletter is for professional intermediaries and introducers only and is not intended for use by the general public. The Specialist Financial Services logo, Specialist Finance logo and strapline "the Preferred Choice of the Professional Financial Adviser are registered trademarks of Specialist Financial Services Limited. The use of these trademarks is strictly prohibited and any infringement of this will be vigorously pursued. Reproduction of this newsletter in whole or in part without permission is prohibited. Specialist Financial Services Limited All rights reserved.