Feedback from brokers and clients since the launch of Portal Portfolio’s Secured Loan and Pension product has revealed that this type of product has significant appeal to self employed professionals, once they are made aware of its existence, says Portal Portfolio.
The product enables the self employed to release funds while protecting any existing low tracker rate on the first mortgage. Portal Portfolio believes that it will be the proactive brokers that will reap the biggest rewards by introducing the product to clients as a “smart option” to take.
The new Portal Portfolio loan allows borrowers to obtains loans of up to £75,000 with a starting rate of 9.9% and at the same time invest in a pension fund returning 4%. The nature of the underwriting and funding, supported by the borrowers themselves, means that loans are particularly suited to self employed professionals most notably accountants, dentists, architects, doctors, lawyers, consultants and IT specialists.
The loan which is only available to those with a pension is not designed to address an individuals’ credit problem but instead to create a smart financial opportunity.
Tim Moore, managing director of Portal Portfolio said: “We believe that the unique nature of the product means that brokers who are proactive in getting the message out to potential clients will create their own market rather than having to wait for the phone to ring.
“This product will be particularly of interest to a number of people with pensions who would like to raise fund for perhaps a deposit on a house for their children; for home improvements or perhaps clearing their child’s student debts so the young person enters the workforce without crippling debts. Additionally, self employed professionals such as dentists are often required to find funds to purchase new equipment in their dental practice and may not be aware that such a product exits that would enable them to do so.”
Vic Jannels, group chairman of AToM commented: “As soon as this product was launched we had a high level of enquiries from brokers who had immediately thought of clients who would be interested to learn that this new type of product existed.
“One broker had two clients, an architect and an accountant, both very successful self-employed businessmen, who wanted to improve their homes but he could not justify remortgaging them away from their tracker rate. He was delighted when I told them that because of their professional status and the funds in their pensions his clients’ qualified for a competitive secured loan.
“He now intends to work his way through his entire database of former and current clients to generate some new business.”
