Our clients were struggling financially after buying a property and having two children in quick succession.
Their property needed further investment to accommodate their expanded family, so as a quick fix they took out unsecured loans and added debts through credit cards.
They were tied into their fixed rate with their lender for another year. However, with rates historically low, we investigated the cost to pay the Early Repayment Charge on their existing mortgage and move to another provider. After assessing the calculations, it made sense to pay the charge and switch mortgage deals early.
Not only did we get our clients a much cheaper rate (including covering their Early Repayment Charges), but we were also able to consolidate their unsecured debt against their property, at a much cheaper rate than the amount they were currently paying.
In total the family have not only reduced their mortgage term by 5 years, but they saved a massive £600 per month.
This will free income up for the clients, allowing them to now start saving every month… which they haven’t been able to do before.