It is estimated that in the Uk each adult owes in the region of £4,000 in unsecured debt, over & above mortgage commitments! With many unsecured credit, charge & store cards charging high interest rates upto 30% apr, sometimes it may be easier to combine these monthly outgoings into one single monthly payment at a lower interest rate. Here are some recent typical case studies from some popular Loan Brokers.
Note these case studies are for guidance purposes only & are not to be seen as a personal recommendation.
We act as introducers only to professional brokers authorised & regulated by the FSA and FISA therefore we do not give advice.
Credit subject to status. This will give you an idea of what may be possible.
Secured HomeLoan Case Study ~ Client Required Speed & High Property Loan To Value
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Self employed clients [required to self certify their accounts] needed a £30,000 secured homeloan 100% Loan to Property value, to consolidate large credit card debts. They were unable to directly prove their incomes & requiring these funds quickly to pay off credit cards due to large monthly repayments. One of the Loan brokers panel of Lenders agreed a secured homeloan over 25 years to 100% Loan to Property value on a self employed & self certfied accounts basis.
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In terms of timescales, from receipt of full documentation to the completion of the £30,000 secured homeloan spanned 10 days.
Secured HomeLoan Case Study ~ Client Get Excellent Rates
- Employed Clients required £50,000 secured homeloan to consolidate debts & carry out Home Improvements. Clients had a clean credit history & would require total lending of 85% Loan to Property value. Borrowing agreed through one of the Loan brokers panel of Lenders who agreed a £50,000 secured homeloan over 20 years at 7.4% APR upto 85% Loan to Property value.
- The clients consolidated £30,000 of debts, saving over £600 per month outgoings & used the remaining £20,000 for Home Improvements.
Secured HomeLoan Case Study ~ Client With Adverse Credit History
- Client has a High Street Prime 1'st mortgage lender. They have recently incurred some adverse credit in the form of defaults. They required £40,000 secured homeloan to consolidate all debts, add a large extension to a their residential property & buy a car.
- Rather than remortgage totally to a Subprime 1'st mortgage lender, a secured homeloan for £40,000 was completed at 5.5% rate with 1% discount until 3/07
Secured HomeLoan Case Study ~ Clients Have Unlimted Adverse Credit History
Generic features of why someone may choose a secured Home Owner Loan
- Combine all monthly credit outgoings into 1 single monthly payment
- High interest rates on existing credit is unmanageable
- Those requiring to quickly raise funds as Remortgaging is slower
- People that have heavy Mortgage redemption penalties to exit existing Mortgage Lender
- Been declined a Remortgage due to low Income multiples
- Home loan is based on affordability not income multiples
- Existing Mortgage rate is highly competitive & don't wish to Remortgage
- May not wish to pay potential upfront fees for a Capital Raising Remortgage
- Existing credit profile is poor & you do not wish to fully remortgage to a Sub Prime Lender
- You wish to wait until your poor credit is out of date before remortgaging again
- Declined a Remortgage by their Mortgage Lender due to their Loan to Value property rating
- Mortgage arrears currently & existing lender will not advance further funds to remortgage
Also do not forget...
- Debts will take longer to repay if you extend the term of a new Home Owner Loan
- You will need to increase your Protection cover to protect the new borrowing
- Do not forget if you borrow the money to actually repay your debts not spend it all !
- You also may wish to tear up your Credit & Store Cards !!
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