Positive Lending provides Second Charge solution to avoid 3% ERC and save £900 per month on unsecured commitments

second charge mortgages case study

A client was recently looking for additional borrowing against her home but had been declined by both her current lender and other banks. She then approached Chris Dunn, a Mortgage & Protection Adviser at Mortgage 1st who quickly recognised that a Second Charge Mortgage would provide the best outcome and referred the case to Positive Lending for review.


  • The client was looking to consolidate £50,000 of unsecured debts with commitments of £1,168 per month
  • Their mortgage was subject to a 3% early repayment charge (ERC) until the end of 2024
  • A further advance was declined on affordability and high debt to income ratio (DTIR)

The Positive Solution

  • Our expert team sourced a 2 year fixed rate which enabled the client to consolidate all their unsecured debt
  • The product will expire in line with the existing first charge, enabling the client to refinance in 2 years ERC free

The Result
The client was happy that we achieved the full £50,000 they required to consolidate all their unsecured debts and reduce their outgoings by £900 per month. The broker was also happy as we were able to provide a fully advised and packaged service to the client whilst keeping them updated throughout the process and also providing a refinance opportunity in 2 years.

Chris Dunn, Mortgage & Protection Adviser at Mortgage 1st, said of the case “Excellent service provided by Positive for the client. The initial inquiry was dealt with swiftly and from inquiry to completion was only a matter of weeks, so great service all round”

Andy Marsland – Regional Account Manager at Positive Lending commented “this is a prime example of how a second charge can be used effectively in the current market where a mortgage isn’t possible or doesn’t provide the best customer outcome”

To find out more about our Second Charge solutions simply click here