After unknowingly employing a rogue builder to develop an extension on their home; a couple accrued £91,000 worth of debt on their credit cards trying to resolve the situation.
The rogue builder, who had requested to be paid upfront for the work abandoned the job after a few days, leaving the extension unfinished and in a mess. To rectify the situation, the couple had to employ a new set of builders to redo the unfinished extension and pay for all new materials. Affording the extra work resulted in them using their credit cards to cover all of the additional costs.
As charges on credit cards are normally higher than a loan, the couple decided to explore other options which would allow them to consolidate their debts and reduce the monthly cost. Unfortunately, their current mortgage lender wouldn’t allow them to borrow more on their mortgage to pay off the debt as they were tied into a three-year fixed deal and the early repayment charges they would incur would be too expensive.
Having dealt with a Mortgage and Protection Adviser from Ingard when arranging their current mortgage; the couple contacted us to see if there was anything we could do.
One of our team assessed the couple’s situation. They recommended that a second charge mortgage would allow them to borrow £91,000 to pay off all of their credit cards, without affecting their current mortgage. Rates and criteria for second charges are really competitive, which meant the couple’s debt was reduced by an impressive £1,750 per month. From the initial telephone consultation with the Mortgage Adviser to the loan being completed, the whole process took just two weeks.
For more information on second charge mortgages for debt consolidation or any other legal purpose, call our Mortgage and Protection Advisers on 01702 533 400 or arrange a callback.
This case study is for illustrative purposes only.