High-income earning professionals refinance £2m London home and repay second charge

The situation

Our clients, a high-earning professional couple — an employed doctor who does additional consultancy work and a self-employed dentist — had previously purchased a £2 million four-bedroom home in London.

At the time of purchase, their income levels were temporarily lower than usual. To secure the property, they arranged a second charge loan via a personal contact to support the overall borrowing structure.

With both careers now firmly established and income significantly improved, their objective was clear:

• Remortgage the property onto a single, competitive first charge.
• Repay the outstanding second charge in full.
• Structure £1m of the mortgage on an interest-only basis with the remaining £500,000 on capital repayment.
• Secure a market-leading rate with a smooth underwriting process.

The property was a prime four-bedroom house in London, representing a substantial and complex borrowing requirement.

The challenges

Although the case appeared straightforward on the surface, there were several technical hurdles:

• Debt consolidation restrictions: Many lenders classify repayment of the second charge as debt consolidation, often imposing strict caps or reducing the maximum loan-to-value ratio.
• Interest-only criteria: The clients required £1m on interest-only, which necessitated a credible repayment strategy and sufficient equity position at term end.
• Large loan underwriting: High-value cases often attract enhanced scrutiny, particularly where self-employed income is involved.
• Speed and certainty: The second charge needed to be repaid efficiently without unnecessary delays or complications.

Several mainstream lenders were quickly discounted due to restrictive consolidation caps or inflexible interest-only policies.

The solution

Following detailed research and lender comparison, we secured a solution with a large bank via their Premier channel.

• The rate secured was a sub-3.60% two-year fixed, which was market-leading at the time.
• £1m structured on interest-only.
• Interest-only criteria satisfied, supported by a minimum £500,000 equity position at term end.
• No restrictive cap on debt consolidation — the transaction was treated as a like-for-like remortgage.
• Competitive overall cost structure.

Crucially, because of the mortgage size and the competitively priced rates being offered, the application was submitted through the Premier team of a large bank. The bank offered direct access to the allocated underwriter to explain the situation and secure agreement on the application. Clear and proactive communication. Swift processing once documentation and valuation were received, plus a smooth and efficient mortgage offer.

The result was a streamlined refinance, full repayment of the second charge, and a significantly improved long-term structure for the clients.

Lending solutions with Trinity Financial

Are you looking to buy a property and require expert advice? We’re here to help you find a solution – no matter how complex your circumstances. Our expert brokers have extensive experience providing creative solutions to secure mortgages for our clients.

Call Trinity Financial on 020 7016 0790 to secure a £2 million fixed or tracker rate mortgage, book a consultation or use our appointment calendar

The information contained within was correct at the time of publication but is subject to change.

Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage