Pepper Money has completed a second charge mortgage in partnership with The Loan Partnership to support a customer looking to fund a buy-to-let investment and home renovations.

The borrower, a limited company director, required nearly £200,000 to cover the deposit for a buy-to-let property and a range of home improvements, including a loft conversion, a new kitchen and bathroom, new windows and doors, electrical rewiring, and central heating.

FLEXIBLE LOAN STRUCTURE

The Loan Partnership selected Pepper Money as the lender due to its approach to assessing self-employed income and its ability to structure a 30-year loan term. The deal allowed for the first five years to be on an interest-only basis before switching to repayment.

Joe Defries, (pictured), managing director at The Loan Partnership, said the case highlighted the role of second charge mortgages in supporting borrowers with major financial commitments.

He added: “This case was an excellent example of how raising capital with a second charge mortgage can help customers to take great strides towards their life goals – providing the funds for both a buy-to-let deposit and significant home improvements.

“Working with Pepper to complete the loan was quick and easy, even considering the customer’s self-employed income and appetite for interest-only during the first five years.”

GROWING USE OF SECOND CHARGE MORTGAGES

Ryan McGrath, second charge sales director at Pepper Money, noted that rising house prices have increased homeowners’ equity, making second charge mortgages a viable option for those looking to fund new investments or home upgrades.

“The property market may have been slow in recent years, but prices have continued to climb, and many homeowners will find that they’re sitting on significant equity in their homes, at the same time as having life aspirations that need funding,” he said.

“Whether it’s investing in a new property or making improvements to a current home, this case demonstrates the role that a second charge mortgage can play in helping a customer to achieve their goals.”