Second charge mortgage releases equity for a BTL investment
United Trust Bank recently completed a £250,000 second charge mortgage for a customer looking to fully fund the purchase of a Buy to Let (BTL) investment property.
Our applicant had built up a substantial amount of equity in his home and decided to release some of it to invest in more property. Our applicant met with his Credit Intermediary to discuss his options. The Credit Intermediary, who is an approved introducer for UTB, completed a fact find with the customer and could see that he had sufficient income to afford the increase in his monthly commitments and advised that a UTB second charge was the best option.
Although he had not yet found a suitable BTL purchase, we had been provided with details of a selection of properties he was considering in an area of East London which is currently undergoing a regeneration programme. This provided UTB with the comfort to release the funds directly to his account so that when the right property was found, he could make an offer knowing the money was already in his bank account.
Once the valuation was completed and other requirements satisfied, which included an Accountants Certificate for the applicant, the Binding Offer was issued to the customer and the introducer online. Offers are accepted by returning the original Mortgage Deed, which the customers did the following day. Now in receipt of the funds, the customer’s ability to purchase a suitable property was possible.
UTB and the introducer were pleased to meet the customer’s requirements swiftly, especially given the unusual loan purpose. At UTB we continue to work with our introducers to find quick and suitable solutions for customers’ individual needs.