A broker approached Positive Lending on behalf of a client looking to raise funds to consolidate debts that had built up over time, including borrowing used to fund extensive home improvements and unexpected car repairs.
The client had been completing a significant build on her property, but the project had cost more than anticipated. During this period, the company she worked for stopped paying commission, reducing her income and making it difficult to maintain the repayments on debts taken out to fund the build. This ultimately resulted in a Debt Management Plan (DMP), which had been registered two years earlier.
The client also had an existing second charge mortgage with Pepper, taken out in May 2023 to help fund the build. With further home improvements still to complete, including a bathroom, driveway and landscaping, she wanted to consolidate her outstanding debts into one monthly payment, reduce her monthly outgoings and lower the interest she was paying across her existing commitments.
The Loan
Product: Second Charge Residential Mortgage
Lender: Interbridge
Loan Amount: £99,000
Monthly Payment: £794.35
Rate: 8.106% fixed for 5 years
LTV: 63.67%
Broker Commission: £1,980
Process: Positive Lending advised
The “Positive” Solution
A broker approached Positive Lending on behalf of a client wanting to consolidate debts from an over-budget home build and unexpected car repairs.
When the applicant’s employer stopped paying commission, the reduced income made the monthly repayments difficult, resulting in a Debt Management Plan (DMP) registered two years prior, alongside an existing second charge mortgage from May 2023.
With further home improvements required, including a new bathroom, driveway, and landscaping, the client needed to streamline outgoings into a single, manageable monthly payment. Clearing the DMP would allow the credit profile to be repaired and prepare for a full remortgage in five years.
The “Positive” Outcome
Securing a £99,000 residential second charge mortgage with Interbridge at 64% LTV, fixed at 8.10% for five years with monthly payments of £794.35 reduced the clients credit commitments by £540 a month.
This funding fully cleared the DMP, consolidated all accumulated debts, and financed the remaining home improvements. Combining these commitments into a single monthly outgoing provides five years of financial stability while working towards a long-term remortgage goal.
Why Choose Positive?
Our team of experts work closely with brokers and their clients to understand the whole picture and use longstanding lender relationships to provide the best suited solution and outcome every time.