Raising a second charge loan for divorce settlement
What was the situation?
I was approached by a self-employed client needing to raise funds as part of a divorce settlement. They were unable to get additional borrowing from their current lender, and did not want to have to sell their properties to fund this.
The client needed the funds quickly. They wanted £65,000 which is not within a lot of lenders appetite, and so needed a lender that was happy with a modest amount of lending. They were securing this against a property valued at £725,000.
What was the issue?
The most significant issues for us was the timescale in which the client needed the funds. Personal time pressures due to their impending divorce meant that we needed to secure the money as quickly as possible.
What was the process?
By leaning on my experience and product knowledge, I approached a lender who I thought would consider a small 2nd charge loan for personal reasons to capital raise. We were also able to recommend solicitors who could get the deal done in the required timeframe.
The biggest road block we had was chasing up the consent to second charge from the current lender. However, using my contacts at the bank and also the solicitor who was acting in the client’s interests, we managed to get the consent in time to allow the client to complete and settle their agreement.
What was the solution?
To the client’s relief, we secured the necessary funds at a very competitive rate with a lender over a 12-month period and were able to successfully raise the funds in time.
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