Roger Morris is managing director of em-
“We have a panel of lenders specialising in premium adverse products specifically suited to those in Del and Raquel’s position. They are eligible to apply for Beacon’s two-year discount medium adverse product at 85 per cent LTV. This is offered at an initial interest rate of 8.90 per cent. This product would cover the cost of the remortgage and leave them with an ample £18,000 to spare.
Beacon accepts a maximum CCJ allowance of £6,000 per applicant on its medium range, as well as four in 12 arrears, including one in the last three months. em- also offers an online generic application facility, in addition to an onsite lender underwriter, which will ensure Del and Raquel’s case is processed swiftly.
em- provides free legal cover on remortgages and continues to offer free valuations and no application fee on all non-conforming products; perfect for those who cannot afford the expense of upfront fees.”
Rob Clifford is chief executive at Mortgageforce
“Precise options would depend on further details, but while most high-street lenders would give this a wide berth, the low LTV may swing it. Various specialist lenders would readily lend.
The desire for free valuation and legal fees further limits the lenders available. Adding legal costs to the loan is possible, but care must be taken not to tip over 75 per cent LTV or further fees will be incurred.
As Del and Raquel have had credit problems in the past, it is also vital to take time to assess their affordability situation.
Borrowing to repay the car loan should reduce short-term outgoings, but total interest costs will rise due to the term.
Many advisers would question the wisdom of borrowing for school fees, as they are obviously having financial difficulties. Increased borrowing can only stretch them further and any missed payments will severely limit their options in the future.”
Tim Sutcliffe is chief executive at pi financial dixon sutcliffe & co
“With CCJs and missed mortgage payments, the question of whether they can even afford their current repayment schedule leaves doubts over their budget. The first thing would be to sit down and look at their income and expenditure and see if this is a cashflow problem or overspending on their part.
Bad budgeting or not dealing with lack of cashflow has left them with limited choices.
Lenders offering the lower prime rates aren’t going to be available because of the poor repayment history. We’re looking at a choice between a remortgage with a non-conforming lender or a second charge loan.
A second charge may be more sensible, as at least they won’t increase the rate across the whole mortgage.
Either route will be expensive and I’d stress that an honest view of the budget is taken before borrowing.”
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