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Client reduces monthly outgoings via a second charge mortgage

A second charge mortgage case study


Our introducer presented us with a case where the client needed to raise £34,000 to consolidate their unsecured debts, which had built up due to improving their property over the last year.

The property was valued at £195,000 and the outstanding mortgage balance was £112,000. With the second charge mortgage, this took the loan to value up to 75% LTV.




The client was unable to raise a further advance with her existing mortgage lender as they wouldn’t allow for capital raising for consolidation purposes at 75% LTV.  Additionally, she had an existing interest only mortgage that also affected her borrowing potential at the LTV required.



After discussing the merits of the application with a selection of our lenders, we managed to obtain an agreement in principle with a fixed interest rate of interest for 2 years at 6%.


This enabled the client to raise funds within 3 weeks, achieve a substantially reduced monthly payment from what she was currently paying, whilst being able to retain her existing low rate interest only mortgage.


This shows, yet again, how a second charge mortgage facility can be utilised where a traditional re-mortgage or further advance does not provide a viable solution.


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