In this case study, the customer was a business owner with a profitable business and a consistent, strongly evidenced income over a number of years. In addition to this, the customer had an excellent credit rating which further strengthened their profile.
However, they were spending most of their monthly income on servicing their credit card debt and several separate loans, accruing a penal rate of interest in the process. This made it especially difficult to reduce their outstanding balance and move towards clearing their debt.
The customer’s broker, Specialist Homeowner Finance approached the Shawbrook team with the case, knowing that Shawbrook is an expert in the second charge mortgage space with numerous awards for their products and services. They received a swift response from the Shawbrook team and the application progressed quickly, with a loan agreed of over £395k at 66% LTV on the Bank’s Platinum product, with a 5 year fixed term.
The monthly repayments are now consolidated into one and stand at £3,227. This is saving the customer the significant sum of £7,163 per month in repayments and more importantly clearing their outstanding balances.
To ensure added value for the customer, overpayments are unlimited and completely free of charge on their Shawbrook mortgage, with no restrictions on the amount paid. This gives customers the flexibility to reduce their balance and interest, helping them to clear their second charge mortgage early if they so wish.
The broker, Tina Carling from Specialist Homeowner Finance, had the following to say:
“Irrespective of their expensive monthly repayments, this customer could clearly demonstrate a strong financial profile with a high income over a number of years. We knew from experience that Shawbrook are experts when it comes to second charge lending, and in these circumstances a second charge was ideal. The service that Shawbrook provided – both in our everyday contact and also the efficient way the application progressed – pleased the customer and made it a pleasure to work with such a forward-thinking lender.”
Maeve Ward, Managing Director of Shawbrook Residential Mortgages adds:
“Clearly, this customer had a trustworthy profile and was being poorly served by their existing finance options. By taking out a second charge mortgage with Shawbrook Bank, the customer was able to achieve their goal of reducing their various monthly outgoings into one consolidated payment. This provides not only much-needed peace of mind, but also an achievable long term strategy to help clear their commitments.”