Struggling with his debts, Mr S first approached his own mortgage lender looking for additional mortgage borrowing to clear the debt and make it manageable. Unable to help, rather than advise him to seek independent advice, the lender proceeded to advise Mr S that he should choose a new 5-year fixed rate to lower his existing mortgage payments. Thinking that was his only option, Mr S agreed.
Having not solved his problem, Mr S approached a national firm of Mortgage Advisers who he spoke to on the phone to see if they could help with consolidating the debt. This firm completed a couple of credit checks and then admitted defeat and sent Mr S on his way again.
We were then approached by the father of Mr S, having found out about his son’s unmanageable debts. The father was local to us and had been recommended to us. We arranged a call with Mr S, and ascertained that we were indeed able to help consolidate this debt. However, due to the original lenders advice on securing a new fixed rate, this now meant either paying in excess of £7k in early repayment penalties or taking on a more expensive “Second Charge” mortgage.
Although in the end, Mr S was able to clear all of his debt, make it more manageable and avoid any missed payments, it ended up costing a lot more than it needed to due to the bad advice given originally.
It’s all about going that extra mile to ensure the best outcome. It wasn’t an easy case to sort, but the 2 “Advisers” that Mr S contacted before us, clearly mis-advised, delayed, and almost prevented Mr S from sorting his debt and being able to carry on with his family life worry free.