Despite owning a residential property worth over £17m, and only having an outstanding mortgage of £3.2m, our client needed to capital raise £750k urgently to help expand their current business.
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Having remortgaged their current residential property in December 21 at an extremely low rate, our client urgently needed to obtain £750k against their existing property to use the cash for business purposes. Our client could not go back to their current lender as it was still within the standard 6-month timeframe since they had remortgaged and would have cost over £92k to exit.
They also needed a quick turnaround to complete, so a second charge loan was the best option, with a view to pay back by the end of 2022.
The client, who has a British passport and clear credit history, needed to generate cash as quickly as possible for business purposes. Despite the second charge loan being used against their family home, the overall risk was 25% LTV so extremely low.
Second charge loans for business purposes are unregulated even if they are secured against a residential property. The lender we arranged the finance with was extremely quick and efficient and even reduced the cost of the valuation of the property because of the low risk.
Case studies are for information purposes only and do not constitute advice.