Second charge mortgage on Brighton house to pay for renovations and protect a low lifetime tracker rate

Area
Brighton
Capital Raised
£300K

When you’re looking for additional finance on a property you need to pay attention to the cost of your current borrowing (and hang on to a low rate, if you have it) as well as the cost of additional borrowing.

The Scenario

Our client needed funds to complete renovations on his house in Brighton, now valued at £1.8M.

But he had an excellent rate on his current lifetime tracker mortgage of base rate + 0.5%, which he understandably didn’t want to lose by remortgaging.

We needed to find the finance that would be most cost-effective for him overall.

And because he was self-employed we needed to find a way of presenting his finances in the most advantageous light, and which would also allow him to take advantage of a good year in business when he might be able to make additional repayments.

The Solution

The answer was a second-charge mortgage on his house which would sit behind his main mortgage, leaving its low rate unaffected.

We used the operating profits of his company in his affordability calculations, rather than his drawn income.

As a second-charge, this additional mortgage was at a higher rate of 4.2%, but the lender we approached charged a very low lending fee and wouldn't charge for legals.

And this lender doesn’t impose early repayment charges, so if our client has a good trading year he can pay off this additional borrowing.

We had a decision in principle from the lender on the same day the client approached us, and submitted his full application the following day. With a few days out for Christmas, the finances were settled in a month.  

Jack Spillane

Finance Broker

Bristol

0117 959 5094

Is your situation similar to this? I specialise in helping clients who need creative development finance solutions, and second-charge mortgages. Give me a call any time and we can set up a detailed discussion of the finance you need.

Mathew Phillips

Finance Broker

Bristol

0117 959 5094

Are you in a similar situation? I specialise in bridging finance at Clifton Private Finance - I will find you the best funding solution for your property transaction.

Alex Chambers

Senior Finance Broker

Bristol

0117 403 4324

Are you in a similar situation? I am a specialist in residential and investment property finance for UK and international clients at Clifton Private Finance. Please don't hesitate to get in touch for a no-cost discussion of the finance you need.

Luther Yeates

Senior Finance Broker

Bristol

0117 244 5561

Are you looking for a similar type of property finance? I have extensive experience finding residential and investment property finance for UK and international clients. Please get in touch and we can arrange a time that's convenient for you to discuss your situation.

Sam ONeill

Senior Finance Broker

Bristol

0117 959 5094

Is your situation similar? I am a bridging finance specialist at Clifton. I can find a quick, cost-effective solution for the funding you're looking for.

Robert Gibb

Senior Finance Broker

Bristol

0117 959 5094

Are you looking for mortgage or short-term finance for residential or buy-to-let property (including HMOs)? I have extensive experience in finding property finance solutions for UK and international clients, both as individuals and limited companies. Please give me a call and let me see what I can do for you.

Adam Arnott

Associate Director

Bristol

0117 205 0214

Is your situation similar to this? I have extensive experience of advising clients who need creative property finance solutions. Please get in touch and we can arrange a time that suits you for a detailed discussion of your requirements.

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