Business Cashflow Emergency Resolved via Second Charge
£95,000 · 7 years · 7.50% fixed. A small business owner needed £95,000 urgently to fund a VAT liability that had become due following a HMRC investigation.
The Client
Small business owner
The Challenge
A small business owner needed £95,000 urgently to fund a VAT liability that had become due following a HMRC investigation. His business accounts were in turmoil and an unsecured business loan had been declined. His home had significant equity. A first charge remortgage would take too long given HMRC's payment deadline.
Our Solution
Doulton placed a second charge mortgage within twelve working days - fast enough to meet the HMRC deadline. First charge lender consent was obtained within two days. The client's home equity was sufficient to accommodate the second charge comfortably within acceptable combined LTV parameters.
The Outcome
HMRC liability met on time. Penalties and interest avoided. Business cashflow stabilised. The client subsequently refinanced the second charge into a first charge remortgage twelve months later once the business accounts were in order, at a materially lower rate. Key highlights: 12-day completion - HMRC deadline met; Penalties and interest avoided - major financial benefit; Second charge refinanced into remortgage at lower rate 12 months later.