£250K second-charge mortgage with complex income

The Scenario

Our clients bought their £2.15M, 6-bedroom house in south-west London for their growing family with the help of a £125K family loan towards their mortgage deposit.

Four months later they were looking for additional borrowing to repay that loan, and an additional £125K for a small "permitted development" extension and new kitchen at the back of the house.

The issues: most lenders won’t consider a second-charge mortgage within six months of purchase. And the husband has a complex income, as a professional investor.

The Solution

The cost of the planned home improvements are just over 5% of the property’s value, which is very acceptable to lenders. The total LTV was 75%.

We focused the application on the wife’s HNW income as a banker, and arranged a personal meeting with the relationship manager of our recommended lender to persuade them to make an exception to their six-month rule.

The couple already have substantial mortgage commitments, on their own home and a Cornwall holiday property which is let out for 10 months of the year. So we proposed this additional borrowing over a 25-year term, but with no ERCs: the monthly servicing costs are as low as possible, and the couple can repay early with maturity of separate investments.  

Nineteen days from application drawdown of funds.