Securing a second charge mortgage can often come with complexities, especially when it involves bridging loan redemptions, self-employed income projections, and legal hurdles. Aria Finance successfully navigated these challenges to help our client secure the necessary funding within tight time constraints.
The Client:
Our client owned a six-bedroom detached home valued at £1,200,000. They had previously used a bridging loan to carry out extensive renovations on the property. As a self-employed individual who had recently transitioned from one limited company to another, they required a lender that would consider an accountant’s certificate and projected income.
The Situation:
The client needed to redeem an existing bridging loan of £115,000 and raise an additional £65,000 to complete the remaining work. Due to the short-term nature of bridging finance, there was a pressing need to secure long-term funding quickly. However, several challenges complicated the case:
- The client’s income situation required an accountant’s certificate to project future earnings.
- The lender needed to consider a projection of self-employed income due to the business transition.
- A Land Registry issue arose, as the prior charge of the bridge had not been registered, requiring legal follow-ups to ensure the lender had visibility before redemption.
Our Solution:
Aria Finance worked diligently to present the case to a lender that would accept an accountant’s certificate and self-employed income projections. We also liaised closely with solicitors to resolve the Land Registry issue, ensuring the prior charge was registered correctly. Our team managed the entire process efficiently, ensuring all parties were aligned and deadlines were met.
Benefits & Results:
The successful redemption of the bridging loan allowed the client to clear the £115,000 balance, preventing any potential penalties or additional costs. This provided peace of mind and financial stability, ensuring they could move forward without unnecessary financial strain.
In addition to the redemption, we secured an additional £65,000 in funding to complete the home improvements. This enabled the client to enhance their property to their desired specifications, increasing its overall value and long-term liveability.
We sourced a lender that was willing to accept both an accountant’s certificate and a projection of self-employed income, which was crucial given the client’s business transition. By accommodating their unique financial circumstances, we ensured they had access to the required funds without unnecessary obstacles.
A key challenge in the process was resolving the Land Registry issue, which required coordination with solicitors to register the prior charge. By managing this aspect efficiently, we ensured a seamless transaction, preventing any delays that could have jeopardised the funding.
The case was handled within a tight timeframe, with the application received in early December 2024 and completed successfully by mid-January 2025. This efficient turnaround was made possible through our expertise, strong lender relationships, and proactive case management.
Through expert knowledge, strong lender relationships, and proactive problem-solving, Aria Finance delivered a successful outcome, providing the client with the financial stability they needed to complete their home renovations.
