Prestige Finance has secured its largest second charge residential loan of over £1m, which was completed within three weeks.
The second charge mortgage specialist — which is part of OneSavings Bank — was approached regarding a customer who wanted to refinance the borrowing undertaken for a major refurbishment of their main residence.
The initial funds for the refurbishment had been raised via two BTL properties, credit cards and personal loans.
A schedule of 155 separate items of work was provided and meticulous records had also been kept.
The customer then needed to source an alternative funding solution as their current first charge provider was unable to consider lending the required amount.
Prestige balanced the lending multiple and the low debt-to-income ratio, at just over 60%, and was able to find a solution.
“This particular case really highlights the importance of second charge finance options and the flexibility in the market to look outside the box,” said Darrell Walker, head of sales of second charge and commercial lending at Prestige Finance (pictured above).
“Second charge mortgages are often used in situations just like this where the client’s existing first charge lender is restricted by lower income multiples.
“The transaction resulted in a great outcome for the customer, saving them over £7,000 every month.”
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