We continually come across clients who have recently remortgaged their home or taken out a secured loan with an adverse lender on advice of brokers.
We meet clients who have been switched lenders, paying huge redemption penalties and fees each time to no real purpose over a short period of time.
Unfortunately, this frequently fails to solve the clients problems. At best it may provide some short-term relief but more frequently it simply worsens the financial situation further.
Very often these clients have been left with significant unsecured debts and are left to struggle on alone having had their equity within their homes removed.
While we are not against remortgaging, it does, in our opinion, have to be part of an action plan to deal thoroughly with the client’s problem.
We do in fact introduce significant numbers of our clients to brokers, who are able to raise a lump sum from the property, which we then use as a formal full and final dividend to the clients creditors by way of a single premium Individual Voluntary Arrangement (IVA).
These arrangements are very often agreed at around 30p in the pound.
By adopting this approach to clients with significant unsecured debt problems we are able to give our clients a new financial start, with just a mortgage like everyone else to worry about.
Jonathan Munnery
debts4us
