Prestige Finance, the longest established second charge mortgage specialist in the UK and part of OneSavings Bank plc, has announced their biggest ever second charge residential loan of over £1,000,000, which was completed within 3 weeks.
The customer had recently completed a major refurbishment of their main residence utilising funds raised via two buy to let properties, credit cards and personal loans. A schedule of 155 separate items of work was provided and meticulous records had been kept. Once the works were finalised, Prestige was approached to refinance the borrowing resulting in substantial monthly savings.
Even though the customer had an exemplary 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 was able to take a pragmatic approach, balancing the lending multiple and the low debt to income ratio at just over 60% as the borrowing was clearly affordable based on their track record.
Darrell Walker, Head of Sales, Second Charge & 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.”