Seven-day second charge for fast portfolio extension

By Marc Goldberg, commercial CEO at Together

The directors of an investment company, who own nearly 250 properties, are set to grow their portfolio after Together delivered funding secured against part of their buy-to-let empire in just seven days.

The lender provided a second charge loan over 26 of their rental homes, worth £3.5m, and owned by the high net worth customers who run their property portfolio through a limited company structure.

Two of the three investors are self-employed directors of the property business, and wanted to keep their favourable interest rate on the current first charge, buy-to-let mortgages on the portfolio of properties across the North of England, which they bought before the financial crisis of 2008.

However, the customers wanted to unlock the equity they had built up over the past decade through a second charge loan, and to complete the deal quickly so they could press ahead with adding to their property portfolio.

They approached expert packager Crystal Specialist Finance, which brought the case to Together, having previously worked closely with the lender and knowing its reputation for delivering fast finance, tailored to their customers’ needs.

Marc Goldberg, commercial CEO at Together, said: “Our dedicated team of buy-to-let underwriters was presented with the complete package after Crystal’s clients couldn’t find the finance they needed through mainstream lenders.

“These customers run a multi-million-pound property empire, which includes buy-to-let homes, commercial property and car parks, through multiple companies.

“All three of the applicants have spotless credit histories and, between them, have years of financial knowledge, as well as the experience they needed to expand their already successful business.”

Together liaised closely with trusted experts from legal firm Priority Law and the customers’ solicitors, and provided £879,000 through a second charge loan, agreeing repayments on an interest-only basis.

Jo Breeden, managing director at Crystal Specialist Finance, said: “This case shows that professional and experienced landlords and investors are focusing on growing their portfolios, despite the tax and regulatory challenges of recent years. This limited company didn’t want to lose the interest rates on its first charge mortgages by remortgaging their properties, so in this case, a second charge was a great option.

“It was fantastic that Together pulled out all the stops to deliver in seven days, allowing the customers to move quickly with their plans to purchase more buy-to-let properties.”

Together, which has been at the forefront of the specialist lending market for 44 years, lowered the rates on its buy-to-let products in March. It has also simplified its process for brokers to make it as easy as possible for them to submit portfolio landlord cases.