Each of our experts have selected real examples of how their particular specialism can assist people resolve their debt concerns in the right circumstances. We hope that these case studies help to demonstrate the theory in real terms. We also trust that they will illustrate how those who make the brave decision to take act on their unmanageable debts can quickly find relief in the situation being brought under control.

Remortgage Case Study

A young couple approached us at Gower Mortgages as they were in the process of arranging a ‘house swap’ with the young ladies sister. The sister was a cash purchaser who was buying our clients house, and our clients required a mortgage to purchase the sisters house. Having an excellent credit history, our clients had approached their own High Street bank for assistance who had advised that they would arrange the mortgage. Our clients were then very distressed to find that the bank had sat on the couple’s mortgage application form for six weeks with out processing it.

This is where Gower Mortgages stepped in. As a ‘whole of market’ mortgage brokerage, we have the ability to search all the available lenders within the market place. Every lender has their own specific criteria which relates to the type of client they are looking for as an organisation. Some lenders only like to deal with professional landlords, some only deal with clients with a poor credit history (known as ‘Adverse’), others prefer dealing with what is termed ‘Professionals only’ i.e. Doctors, Dentists, Teachers etc. Through our high tech sourcing systems, we have access to all this key information, saving hours of work that a member of the public would otherwise have to do if they were trying to find their own deal over the internet. This information would not be available to the public at the same level a Mortgage Practice would be able to access. It is also worth noting that quite a few lenders will only deal with brokers, not the man on the High Street, and, because we are part of a large network of professional mortgage brokers, we also get offered better rates for our clients, that again would not be offered to the public directly.

When we sourced the mortgage for this particular young couple, we were able to find a deal that was some half a percent cheaper than the couples original mortgage offer from the bank. We completed all the necessary paperwork on their behalf, took copies of their ID, bank statements, Utility bills and payslips and sent the entire application pack to the lender electronically. The beauty of lenders using electronic systems is that as a broker, we can access these systems on a daily basis to get updates as to where the case is at any time. Providing the lender has every thing they require, the next step is to arrange the valuation and get the Surveyor out to value the property. Once this process has been completed and the lender is satisfied with the Surveyors report, the mortgage offer is sent to the client, with a copy going to the client’s conveyancing solicitor and a copy to the broker. This process is usually completed within two weeks of processing the original application form.

Once the solicitor is in receipt of the offer letter and has completed the required searches on the property, ‘Exchange of Contracts’ takes place. This is a legally binding contract and is the ‘point of no return’ in house buying terms! Buildings insurance must be in place from this date onwards as the client is now legally responsible for the property, and it is advisable to have life cover in place from this date, as in the event of something fatal happening to the client, the deceased’s estate will be responsible for the property. Once the property transaction has ‘Completed’ - all money changing hands – the lender pays the client’s solicitor, who in turn pays the vendor’s (sellers) solicitor -, the client gets the keys in their hand and can take legal possession of the property.

Our clients were delighted as they met their required deadlines for moving house, the young ladies sister is now safely ensconced in her new home and all are now living a life of peace and happiness!

Secured Loan Case Study

A young couple, who were attempting to launch a landscape gardening business, got behind with their payments on their mortgage, credit cards and a Builders Merchants account. The latter decided to begin bankruptcy proceedings and employed a top London law firm to push for the petition in a quick manner. We were therefore constrained by time!

Vanessa first approached the mortgage provider to see if they would provide a Further Advance. This was because there was plenty of equity in the property and the clients would be borrowing no more than 60% Loan to Value. The mortgage company declined, due to arrears on the mortgage account. We needed to act fast and get the clients a secured loan.

We decided to approach a secured loan packager, as we needed a specialist in this area to act as quickly as possible. Within 24 hours, we had a response, which was the best deal available to the clients, based on their credit history and circumstances. As newly self-employed there was no verification of income, so we had the added complication of having to self certify the income.

We had just over 7 weeks to complete this deal to avert bankruptcy. With close liaison, almost on a daily basis, with the clients and the packager, we overcame several obstacles, notably:

• The existing mortgage lender not willing to allow the second charge initially. This was carefully negotiated by ourselves for them to agree
• The builders’ merchants’ lawyers being non-communicative. We could not engage with the solicitors for three weeks, to inform them that the offer had been received and that we needed them to stop the bankruptcy petition in order for drawdown from the lender to take place. Our administration staff worked tirelessly in order to obtain this undertaking.
• Postponement of the hearing. Vanessa actually went twice to the county court to explain to the judge of how the secured loan application was proceeding and to request extra time for us to complete.

Although this was a stressful time for the clients, they showed tremendous patience and provided everything we asked from them in a prompt manner. This was helped with us keeping in communication with the clients at all times.

We were successful in stopping the petition, paying the mortgage arrears and the personal borrowings arrears. The clients were extremely grateful, as it allowed them to stay in the home, and for them to continue with their business venture.

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