Project Description

This case study is for illustrative purposes only and does not constitute advice.
Think carefully before securing debts against your home, your home may be repossessed if you do not keep up repayments on your mortgage.

Why did they come to me?

Mr & Mrs P had accumulated in excess of £90,000 of debt, across several credit cards and loans, to help fund making improvements to their home.

This was costing them over £3,000 each month, mainly due to having borrowed the money across credit cards and loans, with high interest rates, rather than by increasing their mortgage borrowing to fund the improvements.

They had already borrowed the maximum they could with their current lender and were tied in to a fixed rate deal which we didn’t want to disturb, otherwise they would have had a penalty to pay.  They felt trapped…

What did they want to know?

They wanted to know if there was a way of re-financing, or consolidating their debts, to reduce the monthly payment to a more affordable level, without losing or changing the good mortgage deal they had on their main mortgage.

How did I help?

As they could not borrow any more from their mortgage lender, we were able to refer them to a specialist secured loan company, who reviewed their figures and the consolidation scenario we put to them.  Within 24 hours they agreed to consolidate all of the debts in to one new loan, saving them over £2,500pm!!  The new mortgage sits alongside their current mortgage, with a different lender, and thus they benefit from a much lower interest rate than they were paying, by securing the loans against their property.  They have also kept the ‘good mortgage deal’ they had already, which of course we can help review for them at the appropriate time!