See how we saved our client £1,100 per month on their mortgages and debt, with a few simple steps.

By James Mcgregor on Nov 09, 2017

I am going to keep sharing similar case studies to try and help educate the public on why it is important to always review your current financial situation. This case study will hit home with a lot of people out there. We have recently assisted a client and have managed to save them £1,100 per month within their current outgoings. After completing a lot of work on their residential property my client had resulted to funding it with unsecured debt. E.g. credit cards and loans. The reason for this is they had recently gone self employed so was struggling to fit affordability assessments when looking at mortgage lending, but also the client was on interest only. They also had another buy to let property in the back ground with equity that could also be accessed.

After doing a full fact find it was clear there was no other lender that would be able to assist whilst keeping the mortgage on interest only. Also the clients unsecured debt was at a level which puts stops a number of lenders being able to assist. So the client was slightly stuck with monthly payments of the debts, mortgages and credit cards of £2,100. After reviewing the whole situation there was a few simple solutions to this.

First of all we was able to negotiate a rate switch with the existing lender reducing the rate by 1.85% and fixing the cheaper rate for 5 years. This reduced the monthly payment by £564. Along with this we was able to raise the funds on the buy to let mortgage to consolidate the unsecured debt. This reduced the monthly payments by another £560 per month. Now the overall plan with the client is to make regular over payments on his mortgages to reduce the debt over the term of the mortgage. It is key for the client to keep the interest only mortgages as it helps with cash flow due to the client being self employed.

If you want to discuss your current financial situation do not hesitate to get in touch.

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