£59,000 Second Charge Loan Funds HMO Renovation in 12 Working Days

A couple approached us looking to raise £59,000 to support their buy to let investment plans. The property, located in Tyne & Wear, was being renovated into an HMO and was expected to be refinanced once the works were complete. The clients already held a first charge mortgage with another lender, which was fixed for another year. They were keen to avoid remortgaging and incurring potential early repayment charges, while also keeping the additional borrowing separate from their existing mortgage. We identified a second charge loan as the most suitable solution, providing the clients with the flexibility to raise the funds they needed without disturbing their existing first-charge mortgage. One of the clients was a CIS worker, and as a result, was assessed as self-employed by the lender. CIS remittance slips were used to evidence their income, adding an additional consideration to the application.

We soured a suitable lender within just one day of receiving the enquiry. With the clients being highly responsive and proactive throughout the process, we were able to provide the lender with the necessary documentation promptly, helping to keep the application moving smoothly. Despite the complexities around the clients’ income, we successfully secured the full £59,000 second charge loan and completed within the required timeframe. The additional funding provided the client with the flexibility they needed to continue with the HMO renovation, while retaining their existing mortgage. Once the works are complete, the property is expected to be refinanced as part of their exit strategy.