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%.
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.