Project Description

This case study is for illustrative purposes only and does not constitute advice.
Your home may be repossessed if you do not keep up repayments on your mortgage.

Tony & Cleo’s situation

Mortgage review with Tony and Cleo this morning. Can’t believe it’s been two years since they bought their first home together – and now it’s time to look at a new mortgage deal for them. Their existing arrangement ends in a month and they’ll experience a rate hike if they go onto a Standard Variable Rate!

Meeting Tony and Cleo again was a great opportunity to find out how they were getting on in their home, how much they’d done to refurbish it and work wonders on the tangle of a garden outside!

And, I’m delighted to find out more about the “patter of tiny feet” that Tony had told me about on the phone!

What did we do for them?

Down to work then – Looked through the current mortgages available. Two years ago, I secured them a deal at 4.49%. This time round, due to the work they’ve done to increase the value of the property, I found a suitable mortgage for them at 2.29% – saving over 2%! I also managed to reduce their mortgage term by eight years. No wonder Tony was so happy – that’s over £50 per month saved, alongside the enormous savings made by reducing the term – double whammy!

Feel pleased that I has reduced the term and saved them money on the new mortgage, I then had a chat about Tony and Cleo’s future plans – they were saving, such as they could (especially with Cleo going on maternity leave soon) for baby “paraphernalia” – buggies, cots, car seats and endless baby grows and outfits for all occasions!

In view of the impending family expansion, I advised that they needed to look at some protection for their home and new family. Tony agreed: “If anything happened to either of us, I’d hate to think of Cleo or myself and our baby losing our home if we couldn’t afford the mortgage repayments.”

As I had just saved Tony and Cleo £50 per month, I had created a budget which they could now use to make sure everything was financially secure.

Adding value

Tony already had some Income Protection which I had put in place when he and Cleo bought their home two years prior, and for around £30 per month, I then secured Tony and Cleo Life Cover to protect their mortgage, plus some Critical Illness cover as well – and they were still left with £20 per month to add to their “baby grow” savings!