£35,000 Raised Without Remortgaging: A Second Charge Case Study

Not every client who needs to raise capital should remortgage. In some circumstances, a second charge mortgage can provide the funds required without disturbing an existing mortgage deal.

In this recent case, Natalie Williams CeMAP, Specialist Mortgage Advisor at Ezra Finance, helped a client raise £35,000 while keeping their current fixed-rate mortgage in place.

What did the client need?

The client wanted to consolidate high-interest unsecured borrowing and meet other important financial commitments. The aim was to create a more manageable monthly position while maintaining flexibility for the future.

Why wasn’t a remortgage suitable?

The client was tied into a fixed-rate mortgage with TSB for another year. Remortgaging could have meant losing the existing rate and paying an early repayment charge.

Natalie therefore explored a second charge mortgage: a separate loan secured against the property that could leave the client’s first mortgage untouched.

The solution

Interbridge Mortgages offered a £35,000 second charge product with no early repayment charges. This was particularly important because the client expects to repay the loan when another property is sold.

The solution allowed the client to retain their existing mortgage deal, consolidate more expensive borrowing and preserve the option to repay the second charge without an early repayment penalty.

A fast outcome

The application was submitted on Monday afternoon and, following full underwriting, an offer was issued by Wednesday morning. A quick and well-managed process gave the client clarity at a time when it mattered.

Could a second charge mortgage help?

A second charge may be worth considering when capital is required but remortgaging would mean losing a favourable rate or paying an early repayment charge. It will not be suitable for everyone, and the costs, term and overall amount repayable must be carefully assessed.

At Ezra Finance, we review each client’s circumstances and explain the available options clearly. We also work with mortgage brokers and professional introducers who need specialist support for more complex cases.

Contact Ezra Finance Today

If you or your client needs to raise capital without disturbing an existing mortgage, contact our specialist team to discuss the options.

Your home may be repossessed if you do not keep up repayments on your mortgage or other loans secured against it. Think carefully before securing other debts against your home. Consolidating debt may reduce monthly payments but could increase the total amount repayable.