The problem
The property had been purchased just six months prior to contacting GPS Finance. Originally a client was struggling to pay their debts such as loans and credit cards. However, the client’s intermediary advised them to consider a second charge mortgage and referred them to GPS Finance to look at the available options.
How we solved it
When comparing the monthly payment for a second charge mortgage to a short term finance facility or credit card purchase, the client’s disposable income was in a much more favorable position. On that basis, GPS Finance helped the client to raise an additional £38,000 by a way of second charge mortgage, taking the total LTV to 85%.
The takeaway
When all of your monthly debts are combined into one monthly payment, the goal is to lower the interest rate, shorten the term and get you debt free in a more manageable way. If you’re in a position where you can no longer afford to pay multiple loans or credit cards at once, then a debt consolidation loan could be of help for you.
