Raising a second charge on a property owned in trust

Customer story

This case was sent to us by a broker as the customer wanted to renovate a 17th Century barn on the estate where he lived in a property in trust and turn it into a wedding venue. He also wanted to consolidate various unsecured debts, which he had in fact missed some payments for during the past 12 months.

The second charge finance was hoping to be raised on the customer’s buy-to-let property, which was going through a mortgage product transfer at the time as well. He wanted a speedy turnaround on an interest-only second charge loan over a five-year fixed period.

Applying our insight

As the customer’s main income was from his property in trust, his proof of income was provided by SA302s. The fact he was a non-owner occupier meant we used our extensive knowledge to source a lender which would consider the case.

Together accepted the trust as income because we could provide sight of the legal agreement in place. The landlord was offered his second charge buy-to-let mortgage of £75,000 on an interest-only, five-year fixed rate. With this he consolidated his unsecured debt and had the funds to renovate the barn into a wedding venue.

What we said

"Many buy-to-let lenders will not lend to trusts as there’s no personal liability involved – however, as the finance was being raised to fund a commercial investment property, we approached Together who we knew would consider the case.

We were pleased to help this customer who was limited by the number of lenders who would be able to offer the required finance. Having access to, and knowledge of, lenders and products meant we were able to secure the loan and help him realise his dream of running a wedding venue."

What Together said

"Our flexible lending criteria meant we were able to accept this case based on the fact Clever were able to present to us the SA302s as proof of income and because we were given sight of the legal agreement. Looking at cases on an individual basis means we can support varied income sources and we were happy to provide the funding for this customer."

Find out more about our second charge solutions.