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Second charge mortgage enables client to extend newly purchased property and increase value

A second charge mortgage case study

Objective

Our introducers client’s had purchased their residential property with the intention of building an extension to increase the property size and value.

Obstacle

The property had been purchased just one month prior to contacting Brightstar.  Originally they had planned to pay for the extension using credit cards or short term finance.  However, the client’s intermediary advised them to consider a second charge mortgage and referred them to Brightstar to look at the available options.

Outcome

When comparing the monthly payment for a second charge mortgage to a short term finance facility or credit card purchase, the client’s disposable income was in a much more favourable position.  On that basis, Brightstar helped the client to raise an additional £46,500 by a way of second charge mortgage, taking the total LTV to 85%.

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