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Credit Problems
The number of adults reporting
regular problems repaying their debts has risen from
almost 1.8 million in April 2006 to 2.5 million in
October 2006.
The Problem
Mr P a self employed builder got into severe financial
difficulty and was granted an IVA (Individual Voluntary
Arrangement).
The IVA was discharged during February 2005. In March
2005 Mr P took out an interest only mortgage for £64,000
with a variable interest rate that had risen to 9% by
April 2006. MR P wanted to switch to a repayment
mortgage with a lower interest rate, consolidate a
£16,000 loan, reduce his monthly payments and clear £467
of arrears that he had built up on his mortgage.
His monthly mortgage and loan payments totaled £810. He
was unable to prove his income and required a self
certification mortgage.
The Solution
Mr P's new lender accepted his declared income of
£30,000 and he was offered an £82,000 repayment mortgage
over 20 years. The interest rate was fixed for 2 years
at 6.69%, the monthly payment was £621.
Mr P reduced his monthly expenditure by £189 and had
peace of mind by knowing that his mortgage payments were
fixed for the next 2 years.
If you would like to find out whether a remortgage could
save you money please complete our simple online
enquiry form today
and an adviser will get back to you.
If you find that debt is weighing you down please
contact
us
today to have a confidential chat about your
circumstances and let us find the best mortgage to suit
your needs.
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Too Much Debt
According to the Financial
Services Authority (FSA) over a third of British couples
are kept awake at night worrying about their money
situation
The Problem
Mr & Mrs G were drowning in debt, they owed £105,000 on
their Mortgage and £26,500 split between loans credit
cards & overdraft. Their monthly payments for all debt
totaled £1,643. They were incurring regular charges
from their bank for exceeding their overdraft limit. As
well as the current debt they needed to raise £12,000
capital for their daughter's wedding. To keep the
monthly outgoings as low as possible they were prepared
to extend the mortgage term.
The Solution
All the debt and the capital were added to the mortgage
which increased to £145,000, the mortgage term was
extended from 22 to 30 years. The mortgage was fixed for
5 years with an interest rate of 5.19%. The monthly
payment dropped from £1,643 to £796.
Mr & Mrs G said that when the mortgage completed it felt
as if a huge weight had been lifted off their shoulders
and they could now get on with their lives.
If you find that debt is weighing
you down please
contact
us
today to have a confidential chat about your
circumstances and let us find the best mortgage to suit
your needs.
The overall cost for comparison is 7.8% APR. The
actual rate available will depend upon your
circumstances. Please ask for a personalised
illustration.
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