July 8, 2021

How we helped clients in debt save £1,268 a month with a second charge mortgage

Loan Type:

Second Charge Mortgages

Loan Value:

£95,000

LTV:

55%

Loan Rate:

4.05%

Loan Term:

21 Years

When making the decision to carry out a home improvement project, set yourself an affordable budget and stick to it. It can be very easy to get spend more than you can afford without good planning. One of our clients, unfortunately, got very carried away with a recent home renovation project during lockdown by continuously increasing the works that were being done on their home, without researching the costs first.

The clients inadvertently spent more on credit cards than they realised and ended up with high credit card balances that created monthly payments to an unmanageable level. This case study demonstrates how we were able to eradicate their stress with a second charge mortgage, which reduced their monthly payments by £1,268.

Client

 

The clients were a couple with good jobs. He was a deputy manager for a Global Semiconductor Manufacturer and his partner an Operations Manager for the local council.

The situation

The clients needed to borrow money to consolidate unsecured debt, which had built up through paying for extensive works to be completed on their property. They needed to consolidate the debts onto the house, into one manageable payment, reducing the interest rate applied and monthly outlay.


Our solution

The most suitable product for this situation that we were able to source was a 5-year fixed-rate mortgage, this would provide stability for the first five years of the second charge mortgage.


Benefit

We are extremely customer-focused and are committed to your case from the very beginning. By coming to Enterprise Finance, clients benefit from our expert product knowledge, proactive service and support, and a high conversion rate.


Result

We made a huge impact on our clients, saving them £1,268.75 per month and bringing their DTI back to a suitable level for high street lenders. This improved their chances of being able to remortgage going forward. This instantly relieved the stress they were under having to juggle their finances and being constant mortgage prisoners, due to the DTI ratio. We have given the clients the opportunity to start putting money aside as a safety net, preventing getting into this situation again. But, the most important thing is that the client’s overall desire to have their dream home is now complete, their house looks fantastic and they are very pleased with the overall outcome.


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. 

Second charge mortgages, explained