Customer Circumstances – Initial Enquiry

The customers approached us seeking assistance to refinance their existing mortgage.

They were currently with Helidor (previously Northern Rock) and didn’t think they could remortgage, and were struggling under a high interest rate and restrictive mortgage terms.

Their primary goal was to obtain a fixed-rate mortgage for payment stability. Whilst also, raising money to replace windows and doors, which would improve household bills and add to the value of their property.

The Challenge

Several significant challenges made securing a new mortgage difficult:

• The applicants were classified as “mortgage prisoners,” locked into an unfavourable loan due to their current financial situation.
• One applicant was under a Debt Managment Plan (DMP), which traditionally signals credit distress and limits remortgage options.
• They weren’t seeking to consolidate unsecured debts into their mortgage, as they have short terms to run. However, these continuing would impact affordability.
• They wanted to raise capital for home improvements.

The Solution

Using our specialist mortgage knowledge, we identified a lender with flexible lending criteria, who would offer a benefical solution to the customers, which met their needs.

We worked closely with the lender to structure the remortgage, including a thorough explanation of the DMP’s status, strong payment history, and recent improvements in financial discipline.

The customer was also with a fee charging DMP company with £46 of the £193 payment going to the DMP company. We suggest and sent details of fee free companies to ensure the whole payment went to the creditors.

The Result

The client successfully secured a new mortgage of £86,013 over 14 years on a 5 year fixed rate product. Whilst this doesn’t make an immediately monthly saving, it was the most competitive way to raise capital. Also, as unsecured debts are paid off they will have £654 additional surplus.
The lender was willing to:

• Offer a fixed rate mortgage product at a competitive interest rate.
• Accept applicants under a DMP.
• Consider capital raising for home improvments.
• Offer a more competitive interest rate than their existing lender.

This solution had a significant positive impact on the client’s financial wellbeing by providing reducing financial pressure and giving payment certainty. The customers credit file will start to improve and they should now be with a fee free DMP company.

We will contact the customer 6 months before their fixed rate ends, to try to find them a new mortgage deal.

Initial Enquiry

• The customer was seeking a solution that would:
• Avoid the costly SVR by securing a better mortgage rate.
• Consolidate both secured and unsecured debts.
• Reduce total monthly outgoings.
• Give peace of mind with fixed and predictable mortgage payments.
• Free up surplus income to improve monthly cash flow.

The Challenge

The Solution

After thorough research and discussions with multiple lenders, we were able to secure a mortgage solution that met all of the client’s objectives.

Despite the limited number of lenders allowing debt consolidation at 79% LTV, we successfully arranged a new 21-year mortgage of £379,000 on a fixed 5-year rate of 4.30%.

The Solution

• Monthly payments reduced by £1,270, from £3,560 to £2,290.
• Secured a competitive 5-year fixed rate of 4.30%, providing payment stability.
• Simplified finances with a single monthly mortgage payment.
• Improved cash flow, allowing surplus income each month.
• Enhanced financial peace of mind with fixed repayments and reduced outgoings.
• This solution significantly improved the client’s financial position and provided long-term affordability and certainty.

How did this help

This solution had a significant positive impact on the client’s financial wellbeing by providing reducing financial pressure and giving payment certainty.