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BRIGHTSTAR SECURES £50K FOR CLIENT RENOVATION PROJECT – A CLIENT CASE STUDY

From our August Ezine

Objective

Our introducer presented us with a case where the client needed to raise £50k to complete their renovation which included some structural works.

The property had been purchased for £555k with an outstanding mortgage of £400k, the second charge mortgage took the loan to value up to 81%.

Obstacle

The client planned to stay with family until the works had been completed but it is normally only possible to secure a second charge against owner-occupied residential property.

Outcome

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 8.7% and no early repayment charges.

This enabled the client to raise funds within 3 weeks, achieve a stable monthly payment during the works, whilst providing the opportunity to re-finance without an ERC penalty when completed.

This case study shows how second charge mortgages can be utilised to enable major renovations and we welcome any of our broker partners to contact us to discuss such applications.