Customer Profile
The applicant had taken advantage of the lockdown time during the pandemic to complete home improvements on their property. The client used unsecured credit to pay for the home improvements.
Scenario
The client had unsecured credit bills totalling £85,000. The unsecured debt had high interest rates and the client was in the situation where they were only paying the interest off every month and were not making any headway in reducing the balances. The monthly payment on the unsecured debt was £2,200. The client had just entered into a new fixed rate period on their residential mortgage which had high early redemption charges.
Brilliant Solution
We were able to source a secured loan to consolidate all the unsecured debt enabling the client to reduce monthly outgoings and repay the debt.
Result
A 5-year fixed rate secured loan of £85,000 with an interest rate of 5.60% with no early repayment charges and a monthly repayment of £769. Reducing the client’s monthly outgoings by £1,431.