Debt consolidation for retired clients

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 the equity to consolidate debt and support their children.

The challenge:

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 bank.

This is where we were able to help.

Our experienced team worked closely with the client going beyond regular credit checks to understand their situation. 

We connected them with a second charge mortgage lender who was flexible with property types and was happy to secure 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 sourced a lender who allowed them to use their pension income to qualify. Our approach smoothed out the complications and made it possible for our client to achieve their goals.

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.