We discussed the merits of the application with several of our lenders and managed to obtain an agreement in principle at a variable interest rate of 5.9% with no early repayment charges. This enabled the client to replace the funds needed for the tax bill and to use their bonus income to reduce the outstanding balance over the coming years.
In order for this to be agreed the lender set the following requirements:
- Applicant must provide evidence of the home improvements that were carried out
- Applicant to provide confirmation that the shortfall for the tax bill was a one-off event
- Applicant to confirm what provisions are in place to meet future tax bills.
This shows, yet again, how a second charge mortgage facility can be utilised where a traditional remortgage or further advance does not provide a viable solution.
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