Second Charge

Case Studies

Bespoke Bridging

We were approached by a broker who had been let down by a “mainstream” bridging lender on the day the case was due to fund. The case had complicated income issues, and was a second charge on the main residence for a lease extension, investment into a business and new buy-to-let purchase. The lender raised a number of questions and required additional evidence on the day the borrower had committed to purchase the lease extension. We took the case over at 11am and had it funded by close of play the same day. The broker earned the SAME COMMISSION as if the deal was done with the original lender - no additional fees charged.

Low Yield Buy-to-Let

We received a call from a broker with a buy-to-let re-mortgage enquiry, on a property in Weybridge worth £5m. He had been to another specialist lender directly, looking to refinance an existing 15% Bridge, but the passing rent of £4k pcm wasn’t enough to service the loan of £1.5m. We were able to place this through drawing on background income, halving the customers monthly payments and paying the broker £8,500 commission.

Individual to Limited Company Transfer

A broker came to us with a client that was looking to refinance their portfolio of properties into one Limited Company. There were 16 properties with various lenders - which were all on different products and end dates. We funded this at 75% LTV at standard buy-to-let rates.

Mixed-use Development

An experienced large-scale builder approached his broker for a mixed-use development in the South East comprising of 12,000 sq ft of commercial space and 85 flats. The purchase price was £3.75m, build costs were £12m, with a GDV of £20m. We were able to obtain £12.6m (80% of the total cost) using a combination of both primary and mezzanine borrowing.

100% LTV Auction Purchase

A broker contacted us to help him arrange finance for a young couple who had purchased their first investment property at auction. The house was a timber frame with a flat roof and already had a tenant in situ. The clients needed the funds fast and due to the non-standard construction, the property was unmortgageable through a mainstream lender. We acted fast and secured a bespoke bridging loan for nearly 100% of the purchase price. The interest was rolled up so no income proof was required. The lender agreed to fund the purchase based on the valuation figure and not the purchase price, allowing the clients to use only £14,137 deposit. We also acquired a refinance option and provided an exit route for the bridge.

Overseas National

One of our top introducers called us with a “punt” enquiry. He was looking for a buy-to-let mortgage on a UK-based property for a South African national. The customer was based in South Africa and paid in rand. This was to be the applicants first ever buy-to-let property purchase for £200,000. The deal completed 6 weeks later for £140,000 on a 10-year Standard Variable Rate, priced at 7.15%. The introducer received commission from us of £1,700!

Flat Above a Laundrette

A broker approached us looking for 70% of purchase for two flats above a laundrette in Walthamstow. The deal had previously been declined at valuation stage by BM Solutions, given the potential fire risk. We were able to use the same valuation report and re-house the case with a commercial lender at 70% Loan To Value.

Development Portfolio

A landlord had a portfolio of properties, one of which was a seafront house on the South Coast worth £1.2m. He has teamed up with a local builder to convert this into 5 x 3 bedroom flats at a cost of £240,000 with an end value of £1.9m. He plans to remortgage and let the flats – increasing the portfolio rental income. This loan is being done in two stages.

  1. The existing mortgage of £720,000 has been replaced to allow the development to take place, as the buy-to-let lender wouldn’t allow any works.
  2. The lender will advance money to cover 100% of the development costs.