This case was sent to us by the broker as their clients wanted to consolidate £6,000 worth of existing unsecured debt and raise the funds needed to carry out home improvements. Mr D was self-employed, and Mrs D was in receipt of Working and Child Tax Credit, DLA and Child Benefit. The couple had already been refused a further advance by their existing mortgage lender.
We reviewed this case, and because they’d been refused a further advance and a remortgage wasn’t a viable option, the broker wanted to look at a secured loan for the couple.
We used our expertise to approach a lender we knew that would accept Mrs D’s benefits as a source of income. After explaining how the couple would maintain payments once the benefits stop, the lender was happy to offer the required finance.
Clever were able to secure the couple a second charge loan of £35,000 over 22 years with monthly payments of £250. This was used to consolidate two credit cards which they were paying £200 towards them every month. The rest (£29,000) was put towards a new kitchen extension, to allow the family to grow, stay in the same house and increase the property’s value.
“We were really pleased to help this couple who are now essentially paying just an extra £50 a month for an additional £29,000, which has been used to improve their property and subsequently increase its value.
“Our experience in helping people with various sources of income meant we were able to satisfy the lender this couple could afford the additional loan – even though they’d been previously been refused a further advance. This is a great example of how a second charge can benefit clients on so many different levels.