We secured an £80,000 second charge mortgage to help our clients complete an over-budget home extension while consolidating unsecured debt. By avoiding high early repayment charges on their existing mortgage, they were able to finish their renovation and improve their financial position.
We recently arranged an £80,000 second charge mortgage for clients who needed additional funding to complete a large home extension that had exceeded its original budget.
To keep the build moving, the clients had relied on credit cards to fund the remaining works. As a result, they wanted to consolidate their unsecured debt while raising the additional capital needed to finish their home improvements.
A traditional remortgage wasn’t the right solution. The clients were tied into a competitive first charge mortgage with significant early repayment charges, and the level of unsecured borrowing created affordability challenges for a full remortgage.
A second charge mortgage provided the ideal alternative, allowing the clients to raise the funds they required without disturbing their existing mortgage.
Once the extension is complete, the property is expected to have increased in value. The plan is to remortgage in approximately 18 months, when the early repayment charges have ended, enabling the clients to benefit from the higher property value and consolidate their borrowing under one mortgage.
This case is another example of how second charge mortgages for home improvements and debt consolidation can provide a flexible, cost-effective solution where a remortgage isn’t the most suitable option.
