“In this case, we’ve helped the borrower access the capital they need to finish the build, while keeping the overall structure efficient. It’s about delivering the right funding in the right way to suit the project”
– Gavin Diamond – Inspired Lending
Inspired Lending has announced that it has completed a £935,000 second charge facility to support the final stage of construction on a new build property in Buckinghamshire, structured to allow the borrower to retain their existing first charge mortgage and reduce the cost of capital.
The facility, arranged as a “finish and exit” loan, was secured behind the borrower’s primary mortgage. By structuring the deal as a second charge, Inspired Lending enabled the client to preserve the terms of their original borrowing while unlocking additional capital to complete the build. The loan is due to be repaid from the proceeds of the eventual sale.
The total facility equates to 60% of the gross development value of £2.75 million. An initial advance was provided at 70% of the property’s current value on day one, with further funds released in stages as the project progresses. This staged drawdown approach was designed to match the contractor’s work schedule and control funding costs.
Gavin Diamond (pictured), chief executive officer at Inspired Lending, explained, “Second charge funding can be a smart route for borrowers, with a low-cost first charge in place, who want to avoid the cost and hassle of refinancing. In this case, we’ve helped the borrower access the capital they need to finish the build, while keeping the overall structure efficient. It’s about delivering the right funding in the right way to suit the project.”
He added, “It’s a great example of the kind of lending we set out to do from day one, using common sense, acting quickly and keeping things clear and straightforward. That’s still at the heart of everything we do.”
The Buckinghamshire transaction adds to a growing track record for the lender, following recent completions such as an £800,000 facility in Devon to finish a partially built housing scheme, and a £2 million commercial-to-residential conversion in Nottingham.
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