Second Charge Mortgages

University Costs Funded via Second Charge for a Parent in Wales

£48,000 · 8 years · 7.10% fixed. A Welsh homeowner wanted to fund three years of university costs for her daughter - including fees, accommodation, and living costs totalling approximately £48,000.

Category
Second Charge Mortgages
Loan Amount
£48,000
LTV
68% combined

The Client

Welsh homeowner

The Challenge

A Welsh homeowner wanted to fund three years of university costs for her daughter - including fees, accommodation, and living costs totalling approximately £48,000. She did not want a remortgage as her existing fixed rate was competitive and had two years to run. A personal loan at the amounts required carried very high rates.

Our Solution

Doulton placed a £48,000 second charge over eight years. The monthly cost of the second charge was substantially below a personal loan at the required amount. The combined LTV of 68% was comfortably within parameters. First charge consent was obtained without issue.

The Outcome

University costs fully funded. Daughter completed her degree debt-free from parental funding. The second charge monthly payment was £180 less than an equivalent personal loan would have cost. First charge fixed rate preserved throughout. Key highlights: University costs fully funded - daughter graduated debt-free; £180 per month cheaper than equivalent personal loan; First charge fixed rate fully preserved.

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