| Property | Three-bedroom semi-detached house |
|---|---|
| Location | Whitchurch, Cardiff |
| Client | Employed couple with two children |
| Product | Second charge mortgages |
The challenge
The couple had several credit cards and a car loan with high monthly payments. Their main mortgage was on a competitive fix with an early repayment charge.
What we did
We explained that consolidating unsecured debt into a secured loan can cost more overall, even if monthly payments fall. We compared a second charge with a remortgage and a debt management approach. Based on their priorities, we recommended a second charge on a shorter term to limit total interest, and they closed the cleared card accounts.
The outcome
The second charge completed at 72% combined loan to value, reducing their monthly outgoings.
Second charge mortgagesBorrow against your home's equity without changing your existing mortgage deal.
Learn moreImportant: A second charge mortgage is secured against your home. Think carefully before securing other debts against your home; your home may be repossessed if you do not keep up repayments.