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.