Helping retired clients consolidate their debt

Customer situation

Our client had paid off their mortgage and owned a property with a lot of value. However, they found themselves in a situation where they needed to access funding to consolidate some debt and support their children.

The challenges

• Unique property structure: Their property was not your average home. It consisted of multiple titles, including a residential area, land, and even a large farmhouse. This structure made it hard to get traditional financing.

• Disused care home: There was also a care home on part of the property that wasn't being used. This made things even more complicated.

• Shared land: To top it off, they had sold some of their land to another company, which stored equipment there. This company also shared a driveway with our clients, making it tricky to get a loan from a normal lender.

Solution

Our experienced team worked with the client to understand their situation. We connected them with a secured loan lender who was flexible with different property types and was happy to arrange a loan on the residential part of their property. Additionally, as the clients were older, lenders were unable to consider employed income for the application. However, we found a lender who allowed them to use their pension income to qualify.

Outcome

Our approach smoothed out the complications and made it possible for our clients to achieve their goals. By securing the funding they needed, they were able to consolidate their debts and provide support to their children.

Important note

Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it. Be aware that consolidating debt may mean you extend the terms of the debt and increase the total amount you repay.