£58,000 Raised for Property Improvements Without Costly ERCs
The Client Background
A broker approached us with a client struggling to capital raise. The client had a significant outstanding tax liability from a period of self-employment, alongside unsecured debts built up during a spell of unemployment, which had become increasingly difficult to manage.
The client needed a total of £60,000:
✓ £14,400 to satisfy an outstanding HMRC Tax Bill
✓ £36,000 to consolidate a car loan and unsecured debts
✓ £13,800 for a loft conversion and garden improvements
On paper, the case appeared straightforward. The applicants had clean credit profiles and strong affordability. However, their DTI (Debt to Income) fell outside lender criteria, and the outstanding HMRC liability was not acceptable to traditional mortgage providers.
The client’s existing lender limited additional borrowing to £22,000, significantly below the required amount. Additionally, the client was tied into a fixed-rate product until late 2027, meaning a remortgage would trigger early repayment charges (ERCs), making this route commercially unviable for the client.
The Loan
Product: Second Charge Mortgage
Lender: Interbridge Mortgages
Loan Amount: £60,000
Loan Purpose: Pay tax bill, consolidate debts & make home improvements
Term: 300 months
LTV: 80%
Commission Share: £1,080
Service: Positive Lending Advised
The “Positive” Solution
After reviewing our second charge mortgage panel, we placed the case with lnterbridge Mortgages, the most competitively priced lender that met all of the client’s requirements.
This allowed us to:
✓ Provide the full loan amount required
✓ Consolidate all debts into one manageable payment
✓ Leave sufficient funds to complete the home improvements
Even with the additional borrowing, we reduced the client’s monthly credit commitments from £2,213 to £457, saving them £1,756 per month.
Why Choose Positive?
Positive Lending looked beyond standard lending restrictions to secure a competitive second charge solution that addressed the client’s tax liability, debt consolidation, and home improvement needs in one loan. By leveraging our specialist lender relationships, we helped significantly reduce the client’s monthly outgoings while delivering the full funding required.