Debt Consolidation Case Study

Mr and Mrs C were looking to raise £60,000 for debt consolidation and also to make some home improvements on their residential property.  They did not want to remortgage their residential property because of the low rate they were enjoying and which they did not want to lose. Because the clients did not have a lot of equity in the residential property, we were unable to do this for them.

However, we learned that they had a buy to let property that did have a lot of equity in it and we were able to raise the full £60,000 at a rate of 9.65% secured on this property.

As a result of this, the clients were able to repay an expensive secured loan that they already had on their residential property together with various unsecured credit and still had enough left over for the home improvements they wanted to make. The repayments on this new loan worked out much cheaper than their existing outgoings.

The benefit they gained through securing the loan on the buy to let property was that no income checks were needed as the income is based solely on the rental income received on the BTL property. Completion was very quick as the loan being on a BTL property was unregulated and the clients were able to get the money they required whist still retaining their low rate on their residential mortgage.