Case Study –Second Charge Finance Completed Against a Tight Deadline

The Client

A couple needed to raise £45,000 to consolidate existing debt and fund home improvements. Their existing first charge lender was unable to provide the additional borrowing they required, meaning an alternative source of finance needed to be considered.

Timing was particularly important. With further payments approaching, the clients needed access to the funds quickly while retaining their existing first charge mortgage.

The Solution

We explored second charge lending as a way of raising the required capital without replacing the clients' existing first charge mortgage. With a tight deadline to work towards, the application was packaged and submitted promptly, with close communication maintained throughout the process to ensure outstanding requirements were addressed without unnecessary delay. The second charge finance was successfully raised within six working days of submission, providing the clients with the £45,000 required for debt consolidation and home improvements. This allowed us to consider the clients’ ages, health circumstances, disclosed medical history and required policy term before deciding where the case should be positioned. Rather than submitting multiple applications without a clear view of likely underwriting, we were able to approach the market more selectively. An insurer with an appropriate underwriting appetite was identified and the required life cover was secured at standard rates.

The Henry Dannell Difference

The value in this case came from recognising that the existing lender's inability to provide further borrowing did not necessarily mean the clients were out of options. By considering the wider lending market and identifying an appropriate second charge structure, we were able to preserve the existing first charge mortgage while raising the additional capital required. Crucially, the case was progressed with the urgency the clients' circumstances demanded, resulting in the required finance being raised within six working days of submission. A second charge mortgage is secured against your property. Your property may be repossessed if you do not keep up repayments on mortgages or other debts secured against it.