How a Second Charge Helped Solve a £410K Problem Without Breaking His Deal
Project Overview
Client:
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Bank Used
Challenge
Our client, a Solutions Architect contracting for a global systems integrator, had just locked into a 5-year fixed mortgage. With four years left and a hefty £25,000 early redemption penalty, refinancing wasn’t an option.
Then came the unexpected—a letter from HMRC demanding nearly a decade’s worth of unpaid tax, totalling £110,000. The government’s payment plan spread the cost over five years, but at a monthly cost he simply couldn’t afford.
Results
Referred to us by a colleague, the client spoke to our team and we quickly identified a smarter solution: a second charge mortgage. This allowed him to keep his current mortgage untouched and take out a new, separate loan secured against the same property.
Within three weeks, we had the funds in place. His monthly payments dropped from a potential £6,100 to just £1,780. While no one enjoys paying a tax bill, this approach gave our client breathing room and peace of mind without losing thousands to early repayment fees.
