Kerry is a young professional from London who worked hard to get herself on the property ladder and secured herself a two-bedroom maisonette in the heart of London. She acquired the property utilising one of her local Housing Association schemes and purchased 70% equity of her home. Three years later, Kerry had accumulated significant credit card debt following a program of home improvements. She found herself juggling minimum repayments and making little inroad into the debt. She needed a £25,000 debt consolidation loan to combine her monthly outgoings into one comfortable monthly repayment to improve cash flow. She could then start saving towards purchasing the remaining 30% equity, staircasing to 100% ownership.
The Challenge
After approaching her High Street bank and various unsecured loan lenders, Kerry was repeatedly declined for her £25,000 loan request. Kerry was tied into a low rate fixed mortgage with high Early Repayment Charges and didn’t want to lose her low rate by re-mortgaging.
At a dead end, Kerry decided to approach a mortgage advice firm. They diligently reviewed her financial situation – lending options seemed constricted but established that Kerry’s best option was a secured Home Loan, due to Kerry having two existing charges on her property, both with her mortgage provider and Local Housing Association.
The Solution
Kerry’s mortgage advisor recommended a secured loan with 1st Stop Home Loans who were happy to lend the full £25,000 as a third charge, with a competitive rate. Kerry was a great candidate as she had good job stability, her LTV was 89.5% and she was looking to rehabilitate her finances. After consolidating three credit cards and a loan, Kerry saved £470 a month by taking a 1st Stop Home Loan. She was delighted with the outcome as we helped her achieve her goals of a fixed debt repayment schedule with a comfortable monthly repayment and enabled her to start utilising her surplus cash to staircase towards 100% homeownership.
To enquire about more innovative solutions to help your clients email us at: BD@1ststop.co.uk
