We recently completed this case. My client may be a single parent with 2 children. She contacted me to talk about using some equity in her property for debt consolidation. She wanted to clear her overdraft debts and her store card as they were beginning to worry her.
Month to month she wasn’t struggling for money. The problem is a the lack of repayment structure in situ to assist people to get out of an overdraft or store card debt. We discussed the choices and I have now remortgaged my clients residential property. This allowed her to release some equity that she’d built up to permit her to pay off these debts. This does mean she is taking those debts over an extended duration with the mortgage. However, she now a structure in place to clear the debt. Also her mortgage was previously on a much higher interest. Her monthly payment is now lower but it had been previous even with the extra borrowing included. This is ultimately because she now has a far lower rate of interest.
To top it off, this was one of the quickest remortgage cases I’ve ever done. From full application to completion under 18 days. We actually got the mortgage offer agreed on the same day of the full mortgage application! One very happy client. Although this wasn’t a very large case for us, it’s extremely rewarding to be to help someone like this.
If you’ve got debts that are getting out of control and would really like to talk about your options Get in touch.
*Remember to think carefully before securing unsecured debts against your home*