Saving new parents nearly £2k a month with a second charge

Customer story

This case involved a married couple who had recently welcomed a new baby to their family. Despite Mr C being in full-time employment, Mrs C was on maternity leave and their unsecured debts had crept up.

The had relied more on unsecured finance, such as credit cards, to get by and subsequently, the amount they owed had increased - along with their monthly payments to almost £2,500, which was causing increasing financial strain.

Applying our insight

Mrs C was the second applicant and we had to use our expertise to source a lender which would use the income she was set to receive when she retuned to work after her maternity leave.

Optimum Credit reviewed the case and accepted the application based on a letter being provided by Mrs C’s employer, which confirmed her salary and when she was due to return to work.

The couple was provided with a second charge loan of £87,000 with a rate of 6.9% over 30 years and a five-year fixed rate. This consolidated most of their unsecured debt and reduced their monthly commitment by £1,862.

What we said

“Many lenders are reluctant to lend based on someone’s future salary, but as the couple already had a mortgage and we had proof from Mrs C’s employer that when she returned to work their combined salary would be enough to afford to repay the finance, we knew we could work with Optimum Credit to secure the new loan.

“We empathised with this couple and were pleased to help them as previously they were paying four times more than they are now to several lenders. Now they’re just making one payment a month, which relieved their situation and allowed them to enjoy their new arrival without worrying as much about money.”