Case Study: £50k Second Charge Refinance Completed in Five Days

When a residential homeowner's existing second charge mortgage reached the end of its fixed rate, they expected to refinance through their first charge mortgage provider. However, their remortgage application was declined at the last minute, leaving them requiring an alternative funding solution at short notice.

Aria Finance arranged a £50,000 second charge mortgage, completing the case in less than five working days to refinance the existing second charge, consolidate credit and fund essential home improvements.

Introduction:

• Secured a £50,000 second charge mortgage at 90% LTV
• Repaid the client's existing second charge mortgage following a last-minute first charge remortgage decline
• Consolidated £2,974 of outstanding credit card debt
• Released £19,772 for essential conservatory roof repairs
• Secured a three-year fixed-rate solution
• Used an automated valuation to help streamline the underwriting process
• Completed the case in less than five working days

The Client:

The client was a residential homeowner with a two-bedroom semi-detached property valued at approximately £230,000. They already had an existing second charge mortgage, which had originally been used to fund home improvements and a car loan.

With the fixed rate on the existing second charge mortgage due to expire, the client had expected to secure a first charge remortgage that would repay the existing second charge while also releasing additional funds.

The Situation:

The client's fixed rate on their existing second charge was due to end, meaning they needed to secure a new funding solution.

The client had planned to refinance the existing borrowing through a first charge remortgage and raise additional capital. However, their application was declined by their first charge mortgage provider at the eleventh hour.

Alongside refinancing the existing second charge, the client wanted to consolidate £2,974 of credit card debt and raise £19,772 for essential repairs to the property's conservatory roof.

Speed was particularly important, as the client needed a lender with an efficient underwriting process that could consider a 90% LTV application and provide a three-year fixed-rate option.

Our Solution:

Aria Finance identified a second charge mortgage solution that allowed the client to refinance their existing borrowing while raising the additional capital required for their other plans.

The £50,000 loan was secured against the client's £230,000 residential property at 90% LTV over a 30-year term. The borrowing covered the existing second charge, including the early repayment charge, the outstanding credit card balance and the funds required for the conservatory roof repairs.

The lender was able to consider an automated valuation, helping to streamline the underwriting process and keep the application moving efficiently.

Aria completed the case in less than five working days, providing the client with the funding needed to refinance their existing borrowing, consolidate credit and carry out the required home improvements.

Benefits & Results: 

The second charge mortgage provided the client with an alternative route to refinance after their first charge remortgage application was declined.

The solution enabled them to refinance their existing second charge mortgage while consolidating their outstanding credit card balance and raising the funds needed for the conservatory roof repairs.

Using an automated valuation helped streamline the application, while the three-year fixed-rate option provided the required solution at 90% LTV.

Most importantly, the case demonstrates Aria's ability to act quickly when a client's original funding plans change unexpectedly. By understanding the circumstances, identifying a suitable lender and navigating a 90% LTV second charge application through to completion in less than five working days, Aria delivered a practical solution when the client needed an alternative route to finance.