Second charge secured on two buy to let properties

 Our client, a retired buy to let investor with 20 years’ experience, owned four properties with a total portfolio value of £2.5m. The client wanted to raise £430,000 to pay a large tax bill but did not want to service the interest as this would negatively impact his cashflow.

The client was able to raise the money he needed as a second charge loan with rolled up interest, secured on two of the properties in his portfolio, which were collectively valued at £1.4m. The term of the loan was two years and the annual interest rate was 7.99%.

As interest was rolled up, there were no payments due on the loan, and so no impact on the client’s cashflow. The client will repay the balance off at the end of the term by selling one of the properties in his portfolio.