Trio of record second charge deals totalling £2.2m revealed

Cardiff Money has completed a £933,000 second charge loan with Optimum Credit at 4.3% fixed for two years.

This is the broker’s largest ever second charge completion as well as one of the largest second charge loans ever underwritten by Optimum Credit.

However, Daniel Yeo, MD and founder of Cardiff Money, told Mortgage Solutions that the second charge market still had a long way to go due to uncertainty about fees and the product’s perception which was driven by a lack of knowledge and education.

The client was introduced to Cardiff Money by Huw Oddy of Bridging Deals.

Oddy said: “I felt comfortable enough to pass Dan one of my biggest clients and even though we threw him in at the deep end neither my client nor myself have been disappointed. Dan and his team at Cardiff Money are now our preferred partners for all second charge enquiries.”

Yeo said: “A simple message to Huw on LinkedIn pointing out our balanced stance on packaging fees really resonated with him particularly after his previous experience in the industry.

“This mortgage only happened because we do things differently and in doing so helped the client avoid paying ERCs and losing an outstanding first charge rate while exiting a bridge and saving them a significant amount of money.

“It just goes to show the flexibility, robustness and importance of the second charge product. If done correctly and priced correctly the consumer and wider broking community will begin to engage more with our sector. We are delighted with the outcome for the client.”

Craig Collins, national sales manager at Optimum, said: “Firstly, we were delighted to be given the opportunity to work with Dan and the team at Cardiff Money when they submitted the initial enquiry.

“While these deals require additional scrutiny, it helps when the brokers involved have a clear idea of what is required by the lender and ultimately they ensure they pursue the information relevant to the case. Irrespective of loan size, it simply helps if the case is well packaged.”

Masthaven records

Masthaven Bank completed two of its largest ever second charge loans between June and July, following a positive start to the second half of the year for its long-term lending division.

The first was introduced by The Loan Partnership and totalled nearly £600,000. The offer, including fees, was secured against a loan-to-value (LTV) of 65% and was successfully completed in just six days.

This agreement was then topped a few weeks later by a case introduced by Y3S Loans, whereby a client needed a fast turnaround on a refinance on their existing loan, plus additional borrowing, to secure a holiday home in France.

This offer was secured against an LTV of 65%, totalling over £700,000 including fees and went from case to offer in just two and a half days. This is a record-sized loan, completed in record-time for the specialist lender.

Dan Miller, underwriting manager at Masthaven, said that both of these cases were processed seamlessly.

He added: “Both customers were absolutely delighted that we managed to turn the offers around so quickly and praised Masthaven’s bespoke and flexible approach to lending. When presented with large cases such as these, we always consider each customer’s needs and look for ways to say ‘yes’ – in these cases it was a super-speedy yes.”

The Loan Partnership director Andy Pelley said the team was pleased with the outcome for its customers.

He added: “The quality and speed of the response coupled with the support from Masthaven was excellent. We were delighted to have introduced this customer to them.

“It’s really satisfying to look and back and reflect how strong teamwork from Masthaven, The Loan Partnership and the customers themselves resulted in a timely and positive result.”

Barney Drake, managing director of Y3S Loans added the case highlighted why using a speciualist broker or packager could prove so important.

“Our rapid response team played a huge part in this, personally delivering and collecting all necessary documents – the only packager in the industry to offer such a facility as standard.

“Our high net worth customer was delighted they were able to purchase a property abroad at the lowest rate in the market, with no early redemption charges –  thanks to Masthaven for the great teamwork.”