Mortgages  

Masthaven completes 'record-sized' second charge loan

Masthaven completes 'record-sized' second charge loan

Masthaven Bank has completed two of its largest second charge loans to date.

Within a month of each other, the bank completed two second charge loans worth £600,000 and £700,000 respectively - both against a loan-to-value of 65 per cent.

Masthaven completed the first loan, introduced by The Loan Partnership, in six days and the second, introduced by Y3S Loans for a client requiring a fast turnaround to secure a holiday home in France, in two and a half days.

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The lender reported that the £700,000 agreement was a record-sized loan for the bank and a spokesperson attributed the quick processing time to "competent packaging and proactive communication".

Dan Miller, underwriting manager at Masthaven, said both of the cases were processed seamlessly and are testament to the bank’s strong partner relationships.  

He said: "The Loan Partnership and Y3S provided us with detailed customer data before the cases were submitted and their excellent packaging skills meant the cases sailed through to offer."

He added: "When presented with large cases such as these, we always consider each customer’s needs and look for ways to say ‘yes’ – in these cases it was a super-speedy yes."

Sebastian Riemann, mortgage consultant at Libra Financial Planning, said the second charge market had been treated with stigma in the past, often considered as "last resort" lending, but the market has shifted considerably and has significantly evolved since the Financial Conduct Authority took over its regulation.

He said: "Whilst second charges will always be higher than first as there is more risk involved, rates and fees are a lot lower and the loans have fallen more in line with sensible lending criteria."

Mr Riemann said the shift in the market and regulation allowed lenders to process second charge loans in a shorter timeframe, but noted despite market evolution the current situation was "by no means the finished article".

rachel.addison@ft.com