Second Charge Mortgage

A married couple facing financial strain due to unsecured credit and a large HMRC tax bill found relief through a second charge mortgage, consolidating debt and settling taxes while protecting their existing mortgage rate. This solution reduced their monthly outgoings, alleviating stress and providing a better quality of life.

3/18/20242 min read

a man and woman sitting at a table with a laptop
a man and woman sitting at a table with a laptop

The Client:

The clients were a married couple who owned their residential home.  The husband was self-employed, and wife employed part time – taking care of the children.  Money was tight and keeping up to date with costs of running the home and meeting the repayments to their creditors was becoming more and more stressful for them. 

Scenario:

The client accumulated quite a lot of unsecured credit over time along with a large HMRC Tax Bill. 

Their disposable income was in a negative situation and they were unable to remortgage due to a high early repayment charge.

To prevent any early repayment charge with their existing mortgage lender, and to help with the consolidation of unsecured credit and the settlement of the HMRC Tax Bill, a second mortgage was recommended.

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The Solution:

A Second mortgage was raised for the client.  This in turn protected their existing mortgage rate and meant not having to pay the early repayment charge with the existing mortgage lender. 

We were able to raise £100,000 for the client. The second mortgage lender was happy to consolidate the unsecured credit which was over £60,000 and happy to settle the HMRC Tax bill – the client had to confirm what provisions they had in place to prevent HMRC Tax owed in the future. 

The second mortgage reduced their monthly outgoings from £1,400 per month to a more comfortable repayment of £500 per month.  The client was no longer in a negative disposable income situation.  They were now in a much more positive position which gave them better quality of life and funds left over for any life events.  The pressure and stress they were experiencing was removed.  They only had their mortgage payment and second mortgage payment to focus on which also made everything more manageable for them. 

By settling all the unsecured credit this also helps the client to be in a better position for remortgage options in the future when their fixed rate ends.

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