November 9, 2016
November 9, 2016
A mortgage broker approached Enterprise Finance with a client who wanted to raise £30,000.
The client’s main residence was valued at £480,000 with an oustanding mortgage of £280,000 on an interest only basis. The current monthly mortgage repayment was £758.
The client applied to his existing lender for a £30,000 further advance. The lender agreed but insisted on the entire balance being switched to repayment. The effect of this was a new potential monthly mortgage repayment of £1,511.
Our solution was to arrange a £30,000 second charge mortgage which cost £211 per month. Combining the existing mortgage repayment with the new amount meant that the client was repaying a total of £969 per month.
Our second charge mortgage option was £542 per month cheaper than a further advance with their existing lender would have been.
There were no upfront costs to set up a second charge mortgage and the money was with the client in just 3 weeks. The ERC was just one month’s interest after one month’s notice.
This information is intended for professional intermediary use only and must not be distributed to potential customers.
Enterprise Finance Ltd is authorised and regulated by the Financial Conduct Authority. Firm Reference Number: 302964. Certain types of loans are not regulated, for example loans for business purposes or certain buy-to-lets. Enterprise Finance Ltd is registered with the Information Commissioners Office.
Registration Number: Z6765361 Enterprise Finance Ltd is registered in England and Wales. Company Number: 04440152. Registered Office Address: The Edward Hyde Building, 38 Clarendon Road, Watford, WD17 1JW.
This information is intended for professional intermediary use only and must not be distributed to potential customers