Remortgage with Debt Consolidation & Home Improvement

Case study; We recently assisted a new client who was looking to remortgage their main residence in order to release funds for home improvements and consolidation of their outstanding unsecured debts. Before approaching us the the client had reached out to their current lender, but were informed that they could not obtain a further advance on their property due to affordability and criteria constraints.

When initially considering the range of potential options to the client we identified that a close comparison was essential of a remortgage vs a secured loan to determine the best fit for the client. The main challenge we would encounter is the loan amount being capped by majority of lenders at an amount below what the client was looking to achieve due to the level of unsecured debts currently in-play. Due to this it was imperative for us to source a lender that could lend the required loan amounts based on the client’s current debt level, whilst also identifying a competitive lending proposition that would limit the lender product fees and associated costs which would also have a further impact on the remaining loan amount to be allocated to the home improvements.

Following an enhanced financial assessment and thorough mortgage research, we identified a single lender who could consider the case. Our bespoke approach prompted a lending proposition that could offer the required loan amounts for the home improvements as well as reducing the client’s level of unsecured debts significantly leaving them in a better financial position, and all of this done through a high street lender on competitive terms.

The case was successfully managed from start to finish, culminating in a remortgage that achieved all of the client’s objectives. Not only that, this transaction was completed within a strict four week timeframe due to the client’s preference of a speedy turnaround.

On review of this case, this is a further example of the creative arrangements and detailed approach we adopt here at Pinnacle in order to provide a suitable mortgage arrangement tailored to our client’s specific needs. It goes without saying that debt consolidation isn’t befitting for all clients, and that expect mortgage advice to ascertain the best course of action whenever considering to consolidate debts is highly advisable.