Customer Profile
Broker had a client wanting to purchase a new residential property but was struggling to raise 90% LTV on a first charge.
Scenario
Residential property purchase with a purchase price of £560k. Client has mortgage agreed with a High Street lender for £391,500 (70% LTV) but requires a further £113k. Current residential property not being sold as client to keep as a buy to let property with a mortgage of £300k outstanding.
Brilliant Solution
Second charge loan agreed for £113k to be secured on the residential property and arranged to complete simultaneously alongside the first charge High Street mortgage.
Result
The client was able to raise the full 90% LTV required to purchase the residential property. The secured loan was placed on a 5-year fixed rate to mirror the 5-year fixed rate of the first charge allowing the client to remortgage together without incurring redemption fees in the future.