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SECOND CHARGE MORTGAGE TO FUND COMPLETION OF MAJOR RENOVATION

Objective

Our introducers client had recently completed the main building works for an extension to their main residence.  However, they had exceeded their budget and needed extra funds to finish the works, and although it was watertight, the kitchen, upstairs bathroom and decoration needed to be completed.  The property was habitable as the client had a microwave and fridge freezer in their newly converted utility room as well as the old bathroom.

Obstacle

The area where the kitchen was planned to be fitted had plumbing, electrics and plasterboard completed, ready for the units and appliances to be installed.  Ordinarily, a property without a kitchen and the main bathroom installed would render it unmortgageable.

Outcome

Brightstar were able to source a second charge mortgage lender who were happy to lend on the basis that the client was raising funds to finish the kitchen and bathroom to make the property fully habitable.  The client was required to provide builders quotes and full costing of works to satisfy the lender that there would be no further borrowing required after their funds had been released.

 

The client secured £135k to complete the works at a rate of 4.35% fixed for five years.  The rate also coincided with fixed rate term remaining on their existing mortgage.

 

Our introducing broker received £2500 for referring the client to Brightstar, who provided them with the required advice.

 

Criteria and rates available at time of publishing and are subject to change

FOR INTERMEDIARIES ONLY AND NOT INTENDED FOR THE GENERAL PUBLIC

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