Skip to Main Content

Property development project funded by second charge mortgage

We were contacted by a broker, whose client was looking to raise a second mortgage on a buy to let property he owned.

The funds the client requested were to facilitate finishing a development project he had undertaken with a block of flats. The client, having a lot of experience in property development, already had finance arranged through a lender to develop the block of flats, but was in need of extra funds to complete the project. Having experience in the field the client had lined up a mezzanine funder to step in, however if he had gone ahead with this option his profit margins would have been dramatically reduced.

There was already a modest buy to let mortgage, with an impressively low historic Standard Variable Rate, on the property and the client was not keen to remortgage it. We reached a solution by organising, at a considerably lower cost, a second charge mortgage on the property.

Property Details

Combined property value: £1,400,000

Loan amount and terms: £538,000

LTV: 38%

Rate: 1.25% pcm

Term: 18 months

Lender arrangement fee: 3%

Completion date: July 2014

Consultant: Gareth Richards, 01732 471627 or 07815647452

This is just one example of how we've helped a client secure finance to develop a property. To see more of my case studies please visit either Gareth's or Popy's profile. And if you have any funding requirements, please do not hesitate to contact us. Our direct lines and email addresses can be found below.

NB: ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

Mortgages for Business Ltd is registered
in England and Wales No. 2502713.

Registered office:
17 Kings Hill Avenue,
Kings Hill, West Malling,
ME19 4UA.

© Copyright 2023. All rights reserved.

Mortgages for Business Ltd is authorised and regulated by the Finance Conduct Authority (No. 313537) to transact regulated mortgages. We are a credit broker, not a lender. We work with the whole of market in sourcing a lender for you; we may receive a commission from the lender, and this amount varies between lenders. The FCA does not regulate some investment mortgage contracts. Mortgages for Business Ltd is a founding member of the National Association of Commercial Finance Brokers, the body that promotes best practice within the commercial finance industry. Telephone calls may be monitored or recorded for training purposes.

NACFB