A tailored second charge solution helped our client reduce monthly outgoings by over £1,500 after home improvement spending pushed unsecured debt to unaffordable levels.
Our client had recently completed extensive home improvements, but the costs left them with a high level of unsecured borrowing. With repayments totalling £2,000 per month and Christmas approaching, the client urgently needed to bring their monthly outgoings under control.
A re-mortgage was assessed but did not fit lending criteria due to the client’s high debt-to-income ratio.
We secured a £70,000 second charge mortgage, allowing the client to consolidate their unsecured debts into one manageable payment. Their new monthly repayment is just £436, creating a saving of over £1,500 per month.
The restructuring dramatically improved the client’s cashflow, reduced financial stress and provides a manageable payment per month, which will enhance the client’s chances of being able to re-mortgage in the future.
This case highlights how second charge mortgages can be a powerful tool for debt consolidation, especially where remortgaging isn’t viable due to income, credit profile, or existing mortgage terms.
