Case study: Capital raising quickly to purchase a buy to let

The Problem                          

A couple was looking to purchase a buy to let property to expand their small portfolio. They had already been offered a mortgage on the property but needed to raise funds on their own residential property quickly to secure the new property. The couple approached a Mortgage Broker to find out the best way to capital raise within a short timeframe.

The Mortgage Broker compared a remortgage to a second charge mortgage and found due to the couple’s good credit score, experience renting properties and regular income through permanent employment, that a second charge was slightly cheaper and more likely to complete a lot quicker. The Mortgage Broker submitted a copy of his research and the customer’s credit file to Ingard for their Specialist Team to assess.

The Solution

Ingard’s Specialist Team were confident that they could complete the case quickly and secure an excellent rate with Paragon, a market leader in the second charge sector. The case was assigned to a dedicated Case Owner who sent the introducing Mortgage Broker and customer all of the documents the lender would require to underwrite the loan.

On receipt of these documents the Case Owner checked them and then submitted them to the lender. Due to a delay in the property chain, the couple’s Second Charge Mortgage Offer from Paragon expired. Ingard’s Case Owner contacted Paragon immediately and agreed a date when the customers would be ready to proceed. Paragon’s Underwriters worked swiftly to issue a new Second Charge Mortgage Offer within a few days and the case completed the following day.

On completion of the loan, the introducing Mortgage Broker received 50% of the Broker Fee and Procuration Fee.