The Client Background

A broker approached us with a case involving a client seeking to raise £72,500. The funds were required to consolidate debts that had accumulated following substantial works carried out to the property since its original purchase. The client’s primary objective was to reduce their overall monthly outgoings and improve affordability.

The client estimated the property value at £485,000, with an existing first charge mortgage balance of £364,000. The proposed second charge facility would therefore take the borrowing up to 90% loan-to-value (LTV). Due to the client’s existing debt levels and the high overall LTV, neither a further advance from the current lender nor a full remortgage to an alternative lender were viable options.

The “Positive” Solution

Following a full review of the case across our second charge lender panel, Interbridge approved the client for the full £72,500 loan requested. However, upon completion of the valuation, the property was down valued from the client’s estimated £485,000 to £460,000, increasing the overall lending exposure to 95% loan-to-value (LTV).

Despite the increased LTV and additional complexity this created, Positive Lending’s strong relationship with Interbridge enabled us to continue progressing the case and secure approval. The loan proceeded successfully and was completed within the client’s required timescales, allowing them to consolidate their debts and reduce their monthly financial commitments.