A secured loan and declined mortgage enquiry [Case Study]
16 August 2018 7612 Views
Remortgage affordability decline & a £19,000 consolidation to make monthly savings
The client wanted to borrow £19,000 to consolidate her two personal loans and a credit card via a remortgage @ 54% LTV on interest only as she would downsize in 11 years’ time. She had reduced her hours from a full time to part time staff nurse and was in receipt of an NHS pension too. Her loan and credit card commitments were costing her £542 per month and so with her reduced net income had to make monthly savings to continue her lifestyle. The broker had sourced and contacted many lenders to see if they would approve on either interest only or on capital and repayment over 11 years.
She was declined by every lender that was approached upon affordability and so the only option available was to arrange a product transfer with the Halifax reducing the rate from SVR to a 2 year fixed rate which saved her £120 per month and applying for a second charge mortgage to consolidate her loans and credit cards.
After carrying out research including a soft quotation credit search one of our advisers referred the enquiry to one of our prime lenders based upon the merits of the case. The lender approved the referral within 90 minutes for the amount requested.
The client saved £ 278.00 per month from the second charge mortgage and £400.00 per month overall thereby meeting her short term financial objectives. Our broker was happy first and foremost as a solution could be provided for his client, whilst charging a broker fee.
To discuss a new enquiry whether it be a Second Charge mortgage , a non-mainstream / declined Buy to Let , Specialist First Charge mortgage or Bridging Finance you can contact us and request a quote at www.feasible.co.uk
If you would like to get an estimate of costs and loan monthly repayments then you may find this secured loan calculator useful from Follow Coin: https://www.followcoin.org.uk/secured-loan-calculator/