Case Study – Second Charge

Client’s requirements: –

To raise a loan of £315,000 as a second charge to replace the current bridging loan. The three main objectives of this exercise were: –

  • To obtain cheaper rate of interest as client was currently paying 1.95% per month
  • To extend the lease to enhance value of the property
  • To raise funds for part payment of a business in the South of France

The client is going to be selling the property, hence it was vital there was no exit penalty applicable on redemption. It was also not financially viable to re-finance the client’s first charge home loan as that was on a competitive standard variable rate with a high street lender.

Complete Mortgages’ solution: –

We researched our extensive panel of lenders and obtained a replacement bridging loan for the client, as the currently facility on the second charge bridging loan had expired. The fact that Complete Mortgages is an accredited NACFB member greatly assisted with the pricing of this transaction and we managed to obtain a rate for the client which was considerably cheaper than their existing facility.

Finance Obtained: –

  • Loan of £315,000
  • 12 month term
  • Lender’s arrangement fee of 2%
  • Rate of 1.35% per month
  • Interest to be serviced monthly as opposed to interest being retained
  • No early repayment charges