Broker Pack Omega Group About Us Page 1 What is a Secured Loan Page 2 When is a Secured Loan Appropriate Page 2 Summary & Commission Page 3 Omega Secured Loans Process Page 4 Also Included: Secured Loan Fact Find Form Broker Registration Document Quick Enquiry Form FOR INTERMEDIARY USE ONLY ABOUT US The Omega Group has been trading for over 20 years, having been founded in 1992. During this time it has grown to incorporate a Commercial Mortgage Brokerage, Residential Specialists, Invoice Discounting and Cashflow Finance brokerage and Secured Loan Finance. Whilst the Group head office is in Hertfordshire, we handle enquiries across the UK both directly from clients and from intermediaries. During these two decades we have established strong working relationships with our introducer base, and take pride both in the high level of service for which we are known and continued delivery of this service to introducers and their clients. We work hard to ensure we find the best terms available for every single enquiry, appreciating the importance of fully understanding clients requirements to be able to then source the most suitable and competitive terms possible to meet their needs. At Omega, we are fully committed to fairness, honesty and transparency which helps us guarantee a high level of service you can rely on.
WHAT IS A SECURED LOAN? A secured loan is often also called a Second Charge. It is quite simply a loan secured against property, be that on a residential or rental property. The charge is simply entered after the first mortgage facility. The client does not pay any upfront fee for a secured loan, the packaging company pays for valuation and all processing costs. These costs are then added to the net loan in the way of a broker fee. Times have changed significantly in the last 5 years since the financial crash and the emerging secured loan products from that time are genuine products geared towards assisting clients with their financial needs. Competition between lenders has meant reduced rates, simpler income calculations and higher loan to values making them, post-crash, far more appealing to the financial market. All products most prominently must be able to demonstrate that the end result leaves the client in a better financial position. Secured loans now sit firmly within the principal options of refinancing a home-owning client. To back this up and highlight the importance of this market, in September 2014 the FCA, who now also regulate the secured loan world issued the following guideline: A mortgage advisor must now demonstrate and document that they have explored all financial solutions for client; this includes a further advance and a secured loan. If as an adviser you do not both have this offering in place and ultimately demonstrate that, you are failing outside the FCA regulations. WHEN WOULD YOU OFFER A SECURED LOAN? Client has a very good fixed rate first mortgage or high repayment penalties If you have a client on a fixed rate that they do not wish or is not advisable to change then a secured loan would allow you to leave the mortgage product exactly how it is. This would similarly apply with repayment penalties; would it be more advisable to pay these penalties and re-mortgage to include the extra amount over a longer term or simply apply for a secured loan over a shorter term. Adverse credit issues Secured loans before the credit crunch were known for having products available to overcome high adverse cases which resulted in the sector having a reputation for this alone. This is no longer the case but compared to very strict mortgage products available primarily through computer generated decisions, secured loans can be referred to an actual underwriter who can and often will take a view on the credit issues. How many clients miss a credit card payment then make it up the following month and are penalised as a result? A secured loan company can make a manual human decision if this is the case and allow us to proceed on the same rate and product applicable had there not been the missed payment. If the case makes sense and puts the clients in a better financial position our lenders are far more likely to be able to help. FOR INTERMEDIARY USE ONLY
Minimal equity in the property Some products we can offer via the secured loan route will now extend to 95% equity of the property. So for example if a client has purchased a property with the minimum deposit but would like to do some home improvements to increase the value of the property, these higher loan to value product would suit. Rental Property Some of the most popular products in the secured loan market at the moment are those where the loan is secured on a rental property. Many mortgages secured against this type of property enjoy very low rates clients will understandably not want to disturb that arrangement. A secured loan can allow clients to borrow up to 80% of the property value, allowing them to raise finance for all kinds of purposes. An extremely good selling point for this product range is that the vast majority only require proof of the rental income with no specific personal income requirement. FCA states secured loans must be considered as part of the client solution, and adviser must demonstrate having done so Rates are now from 4.95% LTV max is 95% (85% on rental properties) Loan can be used for any legal purpose Repayment period from 3 to 30 years Loan size from 3000 to 2.5 million Please refer to our criteria matrix for a more detailed product overview Our commission structure is extremely transparent. When processing a secured loan the client cannot be charged any fees upfront, so we as the packaging company pay for all valuation and initial processing costs. The risks associated with this expenditure are therefore ours. A broker fee is added to the net loan to cover these costs and this is from where we receive our income. Every introducer to Omega will share the broker fee 50-50. This way you the introducer dictate what fee is charged, so we have full clarity with who is paid what. This broker fee split applies even if you simply want to introduce the client to us and let us take care of the whole process. Should your client come back directly to us with further funding requirements or to restructure the payments at a later date we will again split any broker fee with you.* *We have strict security and financial checks in place to ensure the clients full financial requirements are met and therefore should only need to borrow once in most circumstances. As an example; Net Loan of 35,000 Monthly repayment 163.33 Term 15 years Rate 5.6% Broker Fee of 2,500 Introducer commission received 1,250 IN SUMMARY COMMISSION FOR INTERMEDIARY USE ONLY
Process Flowchart Introducer Registration 1 2 Enquiry Form 4 Full Fact Find 3 Enquiry Quote 5 Full Quote 6 Processing Pack Issued 7 Third Party Instructions 8 Full Pack Submitted 9 Commission FOR INTERMEDIARY USE ONLY
PRIVATE & CONFIDENTIAL STRICTLY PRIVATE & CONFIDENTIAL Fact Find Introducer Details Introducer name Email Address Adviser name Contact Number I have explained the consequences of non-disclosure and how this may impact on my advice and recommendation Financial Requirements Loan Purpose Consolidation Home Improvements Car Purchase Holiday (If other, please specify) Business Matrimonial Settlement Deposit 2 nd property Other Requested Loan Amount Term Required Applicant Details Title: Mr/Mrs/Miss/Ms/Other First name(s) Surname Previous surname Current Address FIRST APPLICANT SECOND APPLICANT Date Moved into current address Previous Address if less than 3 years Please details further address on notes section if necessary Postcode Postcode Date resided at previous address Postcode Postcode Sex Male Female Male Female Date of birth Contact telephone numbers Home Home Business Mobile Fax Business Mobile Fax Email address Preferred method of contact? Preferred time of contact?
Relationship to other applicant National Insurance Number Nationality Do either applicants have any dependents residing at the security address? Yes No (E.g. Son/Daughter/Spouse/Elderly Parent) If yes please confirm the following details for each dependent - If there are more than 2 dependents add further information to the notes section DEPENDENT 1 DEPENDENT 2 First name Surname Date of birth Gender Male Female Male Female Date moved into residential address Security Address (if Different to Residential Property) Property Address Postcode Year Built Number of Bedrooms Property Type Detatched Semi-Detached House Terraced Flat Bungalow Maisonette Tenure Freehold Leasehold Feuhold Commonhold Flying Freehold If Leasehold, Term remaining years Is the property of nonstandard construction? (I.e. timber framed, thatched etc.) Yes No (If yes, please provide details) Is the Property on a Shared Ownership (If So?) Percentage of the Property owned by you % Which Shared Ownership body are you with? Monthly rental payment? Expected /Received Rental Income if Buy To Let Property Type of Tenant: Student Single AST DSS Multi Occupancy Other If Flat, Which Floor? No of Storeys in block Ex-local authority YES NO Above commercial premises? Yes No If yes, Type of business? New Build Yes No
Income Employment Status (Please tick) Employed Self-employed Employed Self-employed Name and Address of Employer Retired Not-employed Retired Not-employed Occupation / Job title Permanent Contract Permanent Contract On what basis are you employed? (Please tick) Temp Temp Basic hours worked per week? If Contract, specify end of term Current Employment Start date Details of Any Probationary Period State Retirement Age years old years old Your expected Retirement Age years old years old Please give details if either of these ages are to be exceeded If current employment is less than 1 year, please give details of your previous employers details Previous Occupation / job title Time in Employment Years Months Years Months Years If Employed: Basic Salary Guaranteed Additional Income pa (Overtime & bonus etc) Regular Additional Income pa (Overtime & bonus etc.) Other Earned Income If Self-Employed: Number of year s accounts available years years Net Profit last year (pre-tax) Previous Year Year Prior to that Any Other Income (e.g. pensions, rental, investment, state benefits, allowances) Total Annual Income
How can you provide proof of income? Computerised Wage slips Computerised Wage slips Handwritten wage slips Accountants reference Full accounts How many years Handwritten wage slips Accountants reference Full account How many years Please confirm your accounts details Name Company Name Company Address Contact Number Please tick here if you would prefer us to contact you prior to your accountant SA302 s How many years Business Bank Statements SA302 s How many years Business Bank Statements If none of the above please supply details of how you intend to prove your income Credit History FIRST APPLICANT SECOND APPLICANT Have you ever had any adverse credit Yes No Yes No issues or mortgage or a loan application refused? If No then other questions in this section are not applicable Have you ever had a mortgage or a loan application refused? Yes No Yes No Have you ever had a judgment for a debt or loan default registered against you? Have you ever been declared bankrupt or made an arrangement with your creditors? Have you ever failed to keep up your payments under any previous or current mortgage, rental or loan agreement? Yes No Yes No Yes No Yes No Yes No Yes No Is your mortgage currently in arrears? Yes No Yes No If you answered yes to any of the above questions, please provide full details below REFUSED CREDIT Company Date Reason given
DEFAULTS Company Amount ( ) Applicant 1 /2 Date default registered To be repaid with loan Y/N Is default settled Y / N If Yes, date default was settled CCJ s Company Amount ( ) Applicant 1 /2 Date CCJ registered To be repaid with loan Y/N Is default settled Y / N If Yes, date default was settled BANKRUPTCY Bankruptcy Amount Applicant 1 /2 Date of bankruptcy Bankruptcy discharge date MORTGAGE / RENT ARREARS Company Amount outstanding ( ) Applicant 1 /2 Number of Missed payments Date of last missed payment Settled Y / N If settled, confirm date Financial commitments (credit cards and loans excluding current mortgage payments) Type Company Payment ( ) Outstanding ( ) End date of contract To be repaid Client 1 / Client 2 / Combined If credit card is balance repaid in full each month Total Monthly Financial Commitments FIRST APPLICANT SECOND APPLICANT COMBINED I have explained, where applicable, the effects of consolidating debt by adding them to the mortgage and the consequences of changing them from unsecured to secured lending. Please provide further details in notes if necessary.
Budget Planner FIRST APPLICANT SECOND APPLICANT COMBINED EXISTING FINANCIAL COMMITMENTS Total Financial Commitments Total from page 5 Current mortgage / rent Interest only repayment strategy Pensions Insurances Savings / Investments TRANSPORT Fuel Road tax Insurance Servicing Fares (travel card / season ticket) Other UTILITY & OTHER BILLS Gas / other heating Electricity Water Telephone / broadband Digital / cable TV TV Licence Council tax Ground rent Service charge Other GENERAL LIVING COSTS Food Clothing Personal goods (eg. toiletries) Mobile phone Household goods (eg. furniture / appliances) School / child minding fees Entertainment / recreation Alcohol / tobacco Holidays Other TOTAL MONTHLY EXPENDITURE TOTAL MONTHLY NET INCOME SURPLUS INCOME
Current Mortgage Lender Account number (if known) Owner/s Current Mortgage Balance Term Remaining Current Interest Rate % Monthly Mortgage Repayment BTL Property Yes No Interest Rate Given Fixed Variable Discount Capped Tracker Other (If other please give details) If applicable when does rate end? Are there any penalties if you transfer or repay your existing mortgage now? None Are you prepared to pay these if you transfer/repay your existing mortgage? Yes No ERC End Date Are your current mortgage terms portable to a new property? Yes No Repayment Method Repayment Interest Only Part & Part If Interest Only/Part & Part How much is Interest Only? Mortgage to be Redeemed Yes No How do you intend to repay the capital? Endowment Pension ISA Other (If other please specify) Do you expect your income or expenditure to change? Do you expect to pay off some off your mortgage, move or sell your property within your mortgages current term? Yes No Preferences on a scale 1 to 10 (1 being low) please confirm the importance of each of the below to you To fix costs for a certain period Speed of completion 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 The Ability to make lump sum payments Cheapest Annual Interest Rate 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 Lowest lender fees Lowest Early Redemption Charges 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10
Additional Notes
Use of your personal information In assessing your loan application we will make enquires about you including searching records held by credit reference agencies and fraud prevention agencies. If you give us false or inaccurate information and we suspect fraud, we will record this. Law enforcement agencies may access and use this information. The credit reference and fraud prevention agencies will keep details of any searches. Information held about you by the credit reference agencies may be linked to records relating to another person, for example your spouse. For the purpose of your application you may be treated as financially linked and your application will be assessed with reference to any associated records. By signing the declaration you are confirming that you are entitled to disclose information about any joint applicant or financial associate for the purpose of this application. Telephone calls may be recorded for quality, training and security purposes. As a credit broker we may also use your information: To pass your details on to lenders that feel they may be willing to lend you money To inform any introducers about the progress and outcome of your application. To pass on your details to another lender in the future with a view to them offering you products that may be of interest to you To permit access to your information by regulatory bodies to ensure that we are complying with regularly requirements. You can ask for your information not to be used to offer you other products and services by us or other brokers/lenders this application is referred to by contacting us using the details at the bottom of this page. Further details on how we may use your information can be located on our website. Any other broker or lender to whom information is passed during processing your application may use it in the same way. The lender documents that you receive will include a Privacy Statement telling you what they will do with your information. If you choose to use this application form to provide us with sensitive personal data (e.g information about your health), we and the Lender may use it to help inform any lending decision. We will not use it for any other purpose. You have the right to request a copy of the information that we hold about you. If you would like a copy of some or all of your personal information please contact us by using the details at the bottom of this page. We may make a small charge for this service ( 10 maximum). Disclosure and use of your information I/we confirm the information given is accurate and that you, or any lender to whom you submit this application, may use and disclose my data as described herein. I/we understand that the broker will be paid a commission by the lender in recognition of the work undertaken in preparing my/our loan application. This is in addition to any fee that may be charged. I/we confirm that Payment Protection Insurance has not been offered with this loan and that I/we have been advised to seek alternative cover elsewhere if wanted, or to obtain legal advice. Applicant 1 Applicant 2 Date Date Introducer Declaration I have read and explained all of the above to the client and verbal authority has been given by them: Sign Print Full Name Date Think carefully before securing other debts against your home. Your home is at risk if you do not keep up your repayments on a mortgage or any debt secured on it
Introducer Registration First Name Surname Email address Office number Mobile Registered Company Name Trading name FCA number Network By completing this form you are agreeing to the terms and conditions set out within our Introducer Agreement 1 Arlington Court, Arlington Business Park, Whittle Way, Stevenage, Herts SG1 2FS Tel: 0845 470 0139 Fax: 0845 260 0508 Omega Secured Loans is a trading style of Omega Financial Services Limited. Omega Financial Services Limited is an appointed representative of HL Partnership Limited which is authorised and regulated by the Financial Conduct Authority. Omega Financial Services Ltd is a company registered in England and Wales with company No. 5211089. Registered office: Suite 3, Middlesex House, Rutherford Close, Stevenage SG1 2EF
Quick Enquiry Form Please fax to 0845 2600508 or email to underwriting@omegasecuredloans.co.uk INTRODUCER DETAILS Your name Contact Number Business Name Email Address FCA reg number (if not already registered with Omega) Network LOAN DETAILS Residential or Rental Property Loan Amount Loan Term Loan Purpose CLIENT DETAILS Applicant 1 Applicant 2 Title Forename(s) Surname Previous Names Date of Birth Marital Status Age of Dependants in household Home Tel No. Mobile Tel No. Self Emp Employed Self Emp Employed Company Name Job Title Time in Employment Gross Annual Income Declared
SECURITY ADDRESS House name / number Town Street County Postcode Rental Income Received Property Type Property Style Bedrooms Currently Valuation Ex Council Property Shared Ownership Mortgage Company Mortgage Start Date Mortgage Balance Monthly Payment Current Arrears Max Arrears in the last 12 RESIDENTIAL ADDRESS (IF DIFFERENT TO SECURITY) House name / number Town Postcode Mortgage Company Street County Mortgage Balance Mortgage Payment Data Protection Statement In assessing your loan application we will make enquires about you including searching records held by credit reference agencies and fraud prevention agencies. If you give us false or inaccurate information and we suspect fraud, we will record this. Law enforcement agencies may access and use this information. The credit reference and fraud prevention agencies will keep details of any searches. Information held about you by the credit reference agencies may be linked to records relating to another person, for example your spouse. For the purpose of your application you may be treated as financially linked and your application will be assessed with reference to any associated records. By signing the declaration you are confirming that you are entitled to disclose information about any joint applicant or financial associate for the purpose of this application. Telephone calls may be recorded for quality, training and security purposes. As a credit broker we may also use your information: To pass your details on to lenders that feel they may be willing to lend you money To inform any introducers about the progress and outcome of your application. To pass on your details to another lender or Omega Associated Business in the future with a view to them offering you products that may be of interest to you To permit access to your information by regulatory bodies to ensure that we are complying with regularly requirements. Any other broker or lender to whom information is passed during processing your application may use it in the same way. The lender documents that you receive will include a Privacy Statement telling you what they will do with your information. If you choose to use this application form to provide us with sensitive personal data (e.g. information about your health), we and the Lender may use it to help inform any lending decision. We will not use it for any other purpose. You have the right to request a copy of the information that we hold about you. If you would like a copy of some or all of your personal information please contact us. We may make a small charge for this service ( 10 maximum).