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Debt Management
By providing a debt management service, Select is creating further opportunities to help clients beleaguered with unsecured debt who may not be able to get a remortgage due to their financial circumstances.
Offering a different solution to your client is an FSA expectation and there are many advantages of using an expert packager who can offer both mortgages and debt management solutions ‘under one roof‘.
Instead of turning a client away, Select can negotiate a client’s debt to secure enough equity and affordability to sustain a mortgage or simply to help manage the debt itself. If your client is not in a position to get a mortgage now, they may be able to do so after a debt management programme has been put in place.
The Select Partnership has two routes to manage a client’s debt solution:
- One-off short term reduced settlement with remortgage
- Debt management programme with reduced monthly payment
There are opportunities to earn fees both through the debt management service and the resulting possibility of being able to place a previously unviable mortgage case at a later date, whilst retaining ownership of your client.
We offer a 2.5% fee of the reduced debt on the one-off short-term settlement arrangement and commission for the debt management programme, with the potential of earning future mortgage procuration fees.
IVAs
The Select Partnership also caters for clients who may require or be suitable for an Individual Voluntary Arrangement or IVA.
We work closely with the insolvency practitioner, McCambridge Duffy, to ensure IVA cases are dealt with promptly and efficiently.
Generally speaking an IVA comes in 2 forms:-
- Ongoing, where the debtor has an arrangement negotiated with creditors through Equity Debt Solutions, sanctified by the County Courts and where the debt is paid over a period, normally 3 to 5 years.
A remortgage can be put in place at anytime during this period to contribute towards or repay the debt turning a once impossible situation into a tremendous advantage for your client and a wonderful mortgage opportunity for you.
- One-Off, where the above applies but a remortgage is put in place to repay an agreed amount on completion and where the IVA is notional and extinguished immediately once again creating an opportunity where none had existed.
As with our debt management service, there is the opportunity to generate income. We offer a £250 fee for every successful IVA application introduced.
With our resources and experience we are very well positioned to help you help your financially distressed clients and to open up a whole new mortgage market for you.
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