In this post we look at getting a mortgage for a client in their early 50’s with no children and employed earning a basic salary of £18,500 per year along with regular overtime.
Their property in Withington, Manchester was valued at £170,000 with a repayment
(capital & interest) mortgage of £25,000 outstanding which was due to end in 10 years.
Our client approached us because they had got themselves into financial difficulty due to a relationship breakdown which had left them with various personal loans and credit cards outstanding of £15,000.
Their total outgoings for the mortgage and personal loans and minimum payments on credit cards were £ 726 per month – they were looking to consolidate all debts to reduce their monthly outgoings to around £300 per month.
All payments were up to date with no payments missed but meeting them was putting a strain on their income.
The personal loans were gradually reducing but the credit cards payments mainly covered interest with very little capital repayment.
In our clients own words they were expecting a miracle from Manchester Mortgages.
Meeting our clients expectations by getting the mortgage payments to near as £ 300 per month and keeping the mortgage term as close to possible to 10 years.
After researching the market we found a High Street lender willing to consolidate the debts and offered a £ 40,000 repayment mortgage over 11 years on a 2 year fixed rate of 1.53%.
This reduced the mortgage payments to £ 330 per month – closest to a miracle we at Manchester Mortgages could get to !
The new lender offered a free standard valuation and a free legal service and had no arrangement fees.
Our client’s mortgage payments are now £ 330 per month – a saving of
almost £ 400 per month was made – not bad on a total £40,000 mortgage.
We gave our client the option to extend their mortgage to 12 years which would have reduced the mortgage payment to £299 per month but they preferred the 11 year term payments at £ 330 per month
That said, the clients had been paying £ 726 per month for their mortgage and personal loans and credit cards with no missed payments and therefore a reduction of almost £400 per month to £ 330 per month for the new mortgage payment should ensure clients continued future financial stability.
In effect Manchester Mortgages enabled client to receive the equivalent of a 25% pay rise by decreasing her monthly outgoings by £400 per month.
If you are looking to get a mortgage but have been in financial difficulty contact Manchester Mortgages on 0161 706 0242. Click here for our page on getting a mortgage after being in financial difficulty.