2nd charge for complex income structure, N1C
Client circumstances:
Our client required funds to invest in a new joint assisted living property venture. He wanted to release capital from one of his investment properties- a flat in King’s Cross, with an open market value of £1.1m and an existing first charge of £581,000.
However, the client had a rather complex income structure as he receives income from his existing business in irregular, lump sums. The BTL mortgage process would have been long and onerous. So, his broker contacted us straight away.
MT Finance solution:
As an asset-based lender, we focussed on the quality of the asset and the client’s future plans. To show their capacity to service the loan, the client provided us with 3 month’s bank statements and in just over three weeks, we provided a £146,900 second charge bridging loan over the client’s BTL property, at 70% loan-to-value. Interest was part-serviced at 0.89% over a 12-month term.
The benefits:
By taking out our bridging loan, the client had the breathing space to set up his new business venture. Once his business starts to show a track record of income, the client will refinance through a combined mortgage over his portfolio, and redeem the bridging loan. Should he wish to repay before his 12-month term, he will not be penalised for doing so as we do not charge any early repayment or exit fees.
