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Case study

Second charge finance

Second charge mortgage secured in 13 days

Finance secured£1.5m
ClientProperty developer and property finance professional
FinanceSecond charge mortgage
Editorial home representing second charge finance
The objective

To repay an existing bridging facility ahead of expiry and avoid additional interest and associated costs.

A high-value property and substantial borrowing requirement fell outside standard lending criteria, while the existing bridge was due to expire in just over two weeks.

The context

The client had used bridging finance to fund the renovation of a seven-bedroom, six-bathroom property originally purchased for £2.9m.

Following a high-specification refurbishment, the property had an estimated value of £6.5m. With the existing bridge approaching expiry, the client needed to secure £1.5m of longer-term finance to repay the bridge and avoid additional interest.

What needed to be considered

The facility was due to expire in just over a fortnight, a valuation was required in a very tight timeframe, and any delay could have resulted in additional costs of approximately £20,000.

The high property value and £1.5m requirement meant the case fell outside standard criteria and needed a lender willing to take a pragmatic approach while meeting regulatory and lending requirements.

Our approach

With a clear deadline in place, we focused on identifying a lender whose underwriting approach could accommodate the size and circumstances of the transaction.

The case was presented comprehensively from the outset, with relevant supporting information provided to enable efficient assessment. We also worked closely with an established valuation contact so that the valuation report was returned within 24 hours of inspection.

Regular client updates and coordinated communication between all parties allowed outstanding information to be identified and addressed quickly.

The outcome

The client secured a £1.5m second charge mortgage at 56% LTV over a 23-year term, completing in just 13 days.

The new facility repaid the existing bridge ahead of expiry and avoided additional interest and associated costs that could have reached approximately £20,000.

Why a private client approach mattered

The transaction required consideration of the client’s wider property and business circumstances rather than applying standard criteria to a single property.

Understanding the client’s position, the value and nature of the property and the time-sensitive requirement to repay the bridge made it possible to identify a route that reflected the circumstances and could be delivered within the required timeframe.

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