In this guide we focus on a customer who wanted a loan to pay off debt, in order to complete a Debt Management Plan, whilst finding a lower rate too.
Here we’ll look at:
- How we helped our customer with finding a loan to pay off debt
- Getting a lower rate, and lower monthly payment in spite of having a higher
mortgage value - Reducing the term of the mortgage, so that our client will be mortgage free sooner
- Finding a far better rate for him, so he could afford to take out the extra loan to pay off debt
Getting a loan to pay off debt
With Clever Mortgages, we were able to help Mr E with:
- Bringing down his mortgage rate – we found a mortgage with a trusted lender that significantly reduced his mortgage rate (from 5.74% to 2.10%)
- Bringing down the mortgage term by 3 years – meaning he’ll be mortgage free three years sooner
- Getting a loan to pay off debt – Mr E was able to clear his partner’s Debt
- Management Plan, whilst still having the above advantages
| Balance | Payment | Rate | Term | |
|---|---|---|---|---|
| Current Mortgage | £88,841 | £650 | 5.74% | 18 Years |
| New Mortgage | £97,955 | £634 | 2.10% | 15 Years |
Completed 15/10/2018
Our client came to us whilst on a higher than average standard variable rate with their existing lender. Our expert searched to find a remortgage option that would raise the funds to clear Mr E’s partner’s Debt Management Plan, whilst also reducing the mortgage rate.
Due to such a large reduction in rate the plan (which had £9000 left to pay off) could be cleared, and we could reduce the term and the monthly payments too.
We were delighted to be able to take the hassle away from the remortgage process for Mr E: He just had to tell us some details about himself and his financial situation, and discuss the goals he had for his remortgage. Now both he and his partner are in a much better situation, and can start rebuilding a more positive credit file picture.
Debt consolidation is a good solution for some mortgage customers – however, it’s not suitable for everyone.
You should always review the total amount payable through consolidation, not just the immediate savings in terms of a reduced monthly payment.
Please be aware that any unsecured debts consolidated within the mortgage, would then be secured against your property.
We’ve helped 1000s of customers, with finding a remortgage solution that best suits them.
We help customers achieve their remortgage goals, and we know the best lenders and products to look to for each individual situation. We could give you the best chance of getting on a great remortgage deal, even if you’re:- Needing a mortgage after an IVA
- Looking to remortgage with a Debt Management Plan
- Worried about other defaults on your credit file
- After a bad credit self-employed mortgage
- Search for the right deal for you, even if you’ve got a poor credit history – many of the customers we help have found themselves in a bad credit situation, and might have been on a Debt Management Plan or in an IVA.
- Discuss with you the different options available for meeting your specific goals – we can discuss your individual goals for remortgaging with you, and take the hassle away from the remortgage situation.
- Make sure your application goes to the best lenders for you – not all lenders offer mortgages to people with a bad credit history, but we know which ones are most likely to say “yes”, and to give you a good rate when they do.
Why should I use a mortgage broker for my remortgage?
- You’re likely to only have to do one application – this will save you time, and more applications from being recorded on your credit file
- Brokers can advise on what would improve your chances for achieving a specific mortgage goal – e.g. finding a guarantor or opting for a joint mortgage
- They can take the hassle of application forms away – talking you through every step, and asking all the right questions
