Prestige Finance has secured its biggest ever second charge loan of £1m, which was completed in three weeks.
The customer had completed a major refurbishment of their main residence utilising funds raised via two buy-to-let properties, credit cards and personal loans.
Darrell Walker, head of sales, second charge and commercial lending, Prestige Finance, said: “This particular case really highlights the importance of second charge finance options and the flexibility in the market to look outside the box.
“Second charge mortgages are often used in situations just like this where the clients 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.”
A schedule of 155 separate items of work was provided and meticulous records were kept. Once the works were finalised, Prestige was approached to refinance.
Even though the customer had a strong credit profile, their current first charge provider was not able to consider lending the required amount, so they needed to source an alternative solution.
Prestige balanced the lending multiple and the low debt to income ratio at just over 60%.