Project Background
Our client, a Buy-to-Let landlord, approached us looking to release funds from his property portfolio to help pay for his upcoming wedding.
He had initially been referred to us for a second charge loan, with the intention of raising the capital he needed while keeping his existing mortgage in place.
However, after looking at the wider picture, it became clear that a second charge wasn't necessarily the most cost-effective route.
Challenge
The client needed to raise capital for a personal expense, but simply following the initial second charge recommendation could have meant taking on additional borrowing at a higher overall cost.
The solution needed to:
Raise the capital required for the client's wedding.
Consider the cost of the client's existing mortgage alongside any new borrowing.
Avoid unnecessarily adding a second charge to the property.
Find a more cost-effective overall borrowing structure.
Keep the client's wider financial circumstances and property portfolio in mind.
Solution
Rather than simply proceeding with the second charge referral, we took a step back and reviewed the client's circumstances as a whole.
We identified that a full remortgage would be significantly more cost-effective, allowing the required capital to be raised as part of the new mortgage rather than taking out additional second charge finance.
By restructuring the existing mortgage and incorporating the capital raise, we were able to provide the funds the client needed while creating a more competitive overall borrowing solution.
Outcome
The client was able to release the funds needed for his wedding while avoiding the additional cost of a separate second charge loan.
The remortgage provided:
The capital required for the wedding.
A more cost-effective alternative to the original second charge recommendation.
A restructured mortgage better suited to the client's circumstances.
One overall borrowing solution rather than additional second charge finance.
This case is a good example of why the first solution isn't always the right one. By looking beyond the initial referral and considering the client's wider circumstances, we were able to identify a more suitable way to raise the capital — saving costs while helping the client put the funds towards one of life's big moments.
