Case Study: Helping a Customer Raise £40,000 Through a Second Charge Mortgage to Support a Family Property Purchase

At Mercantile Trust, we understand that every borrower’s circumstances are different. As a specialist UK lender, we take a flexible and common-sense approach to underwriting, reviewing each case individually rather than relying solely on automated decisions.

In this case, we supported an introducing broker and their customer with a £40,000 second charge mortgage, allowing the customer to raise funds from their existing property to gift money to their parents towards a property purchase.

The Challenge: Raising Funds Without Changing the Existing Mortgage

The customer wanted to access equity from their property while keeping their current mortgage in place.

A second charge mortgage provided a suitable solution, allowing the customer to secure additional borrowing against their property without replacing their existing first charge mortgage.

Working closely with the broker, our team reviewed the customer’s circumstances and looked at the full picture to find a solution that met their needs.

The Second Charge Mortgage Solution

Mercantile Trust was able to provide:

• Loan amount: £40,000
• Loan term: 300 months
• Product: 5-year fixed rate with no Early Repayment Charges (ERCs)
• Affordability: Rental surplus considered towards affordability assessment
• Valuation: AVM (Automated Valuation Model) used
• Purpose of funds: Gift towards a family property purchase
• Mortgage type: Second charge mortgage

By applying our manual underwriting and common-sense lending approach, we were able to consider the customer’s wider circumstances and use available rental surplus within the affordability assessment.

The application was submitted on 18th June and completed on 30th June, enabling the customer to access the funds they needed quickly.

Customer Feedback

“I worked with Truffle to secure a second charge with Mercantile Trust in order to gift funds to my parents so they could purchase a property. The service from day one was excellent. Both Truffle and Mercantile Trust were on top of everything and guided me through the process brilliantly. I always felt well-informed and supported, never left wondering what was happening or what the next steps were. Any questions or queries were answered promptly and clearly, which gave me real confidence before committing to the full case. The processing team worked incredibly efficiently — the case was resolved within 7 to 10 days and the funds were received in my account on the day of completion. I will absolutely use them again in the future and would highly recommend them to anyone looking for a second charge or any more complex mortgage case. A massive thank you to the whole team!”

Looking for a Flexible Second Charge Mortgage Solution?

At Mercantile Trust, we work with brokers and direct customers to support a wide range of second charge mortgage requirements, including raising funds for property purchases, investment opportunities, and other borrowing needs.

With manual underwriting, direct access to our experienced team, and a flexible approach to complex cases, we focus on finding practical lending solutions.

Have a second charge mortgage case you’d like to discuss? Contact the Mercantile Trust team today.