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Second Charge mortgage reduces client outgoings by £731 a month

July 26, 2018

house money-1

Loan: Second Charge Mortgage
Amount: £47,885
Monthly Repayment Cost: £389.36
Completion: 4 days from customer application received

Here's how we helped one of our broker's customers reduce their monthly outgoings by £731 a month, in just 4 days from the application being received from the customer:

Situation

The pressure of high amounts of unsecured debts Mr & Mrs P had accumulated was taking its toll. Monthly payments of £1,120 for their credit card debt of £47,885 was taking up all their disposable income.

The high interest rates on their credit cards meant they were just making minimum payments and not touching the balance – and worse, they couldn’t save for their retirement. They were stressed and worried about their future.

Mr & Mrs P approached their High Street mortgage lender for help, but they had a large Early Redemption Charge (ERC) of £6,792 so a remortgage wasn’t appropriate, and the bank couldn’t lend additional funds solely for debt consolidation. It was Catch 22.

Solution

That was until Ian Butler, an Appointed Representative (AR) of Openwork Limited, referred them to Enterprise Finance.

After a ‘Fact Find’ call between the client and one of our Second Charge Mortgage Advisers, Holly Driver, we were able to find a solution – quickly.

Enterprise Finance recommended a five-year fixed Second charge mortgage at 5.05% with no ERCs (allowing for overpayment) at £389.36 per month.

The clients were delighted with the proposal and completed the application forms that very same day. This fast turnaround helped us go from ‘application received’ to ‘completed case’ in just 4 days.

Result

The pressure lifted immediately. By consolidating their credit card debt, they reduced their outgoings by £731 per month and £9,943 in total cost of credit. Even better, the reduction in their outgoings is allowing them to top up their pensions and save for their future.


Here's how Ian Butler felt about his experience with Enterprise Finance:

“I recently contacted Enterprise regarding a secured loan for my clients to clear some credit card debt they had acquired. The clients had already spoken with their existing lender and were declined the extra borrowing. You received the completed form on the Monday and the case completed by the Friday - an amazing turnaround. The clients were incredibly impressed with the service and everyone has ended up happy. Keep up the good work.”
Ian Butler, AR of Openwork Limited 


“After the fact find with the client I was confident that consolidating their credit card debt was the appropriate thing to do, as having a ‘minus’ disposable income each month was causing them stress. They knew they needed to save for their future retirement but couldn’t as things stood. By consolidating these debts, it will give my client the ability to do so, releasing the worry of what their future holds.”
 Holly Driver, Second Charge Mortgage Adviser


With rates from 3.73%, LTV up to 95% and lending criteria up to £2m –
 Second Charge mortgages can be used for a wide variety of reasons, and clients. So why not contact us now?

For a quick chat, a meeting to discuss opportunities, or a more complicated deal on your desk – drop us a line or give us a call today on 020 8731 5333.  

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