Repossession Case Studies

Below are some true case studies for clients that approached us that were subject to mortgage arrears and the possibility of being repossessed.

Mr S - Reading
Mr S had a mortgage with a sub-prime lender, a secured loan at a premium rate, a car loan and £20,000 worth of crippling credit card payments and despite having a good income, he could not afford all of the payments and had started to fall into arrears with his mortgage. We arranged a new mortgage that consolidated all of the payments into one low payment and as the payments reduced so radically, part of the mortgage was converted into a 5 year capital repayment mortgage so that the credit card element of the mortgage would be paid off very quickly.

Mr & Mrs B - Manchester
The applicants had received an eviction warrant due to many months of mortgage arrears due to Mr B being unemployed. He was now back at work but due to the fact that they had defaulted on the terms of the suspended repossession order they were not given another opportunity to renegotiate and restructure the arrears. They were six months away from being able to redeem their current mortgage without penalty so a remortgage would have meant they would have suffered a 5% redemption penalty. We were able to suspend the eviction warrant and provide a secured loan that cleared all of the arrears. Six months later we remortgaged the applicants to consolidate the current mortgage and secured loan to give one mortgage payment, this also avoided suffering the redemption penalty. The mortgage was also more competitive than the mortgage that was available previously as the mortgage arrears were more historic which further reduced the monthly payments.

Mr W - Nottingham
We were approached by Mr W who had just been made redundant and in advance he realised he was going to fall into arrears with his mortgage. His home was worth £150,000 and he only had a £50,000 mortgage. He decided he was going to downsize if he could not find new employment quickly. So that his credit rating would not be affected we arranged a second charge bridging loan that would not require servicing as the monthly interest could be rolled up and added to the loan. He put his house on the market but fortunately found a new job on better pay which allowed him to keep his home so he did not have to sell. As he was wise enough to foresee he would go into arrears on his mortgage and took out a loan to aid cash-flow his credit rating remained intact so we were able to provide a new mortgage to consolidate the bridging loan with a High Street lender at a more competitive rate with lower payments than with his current lender.

Mr & Mrs R - Cheltenham
Mr & Mrs R were seriously in arrears with their mortgage and had not been able to keep to terms of their suspended repossession order and had received an eviction warrant. There was sufficient equity and a new mortgage consolidated a secured loan giving one affordable mortgage payment. Within hours we had a new mortgage agreed and completed the necessary paperwork to generate a hearing and stop the eviction warrant. The new mortgage completed approximately three weeks later and Mr & Mrs R can afford the new mortgage.

Mr & Mrs P - Southampton
Mr P was a practicing solicitor earning in the region of £80,000 per annum who was 70 years old. He suffered a stroke and was unable to work. His home was valued at £1,000,000 and he had a mortgage of £400,000 on the home. He was unable to meet his mortgage payments and due to his age an lack of household income there was no way of gaining a mortgage of any description. Mr P decided to sell the family home and downsize but due to a repossession order he was running out of time to sell it under his own control. We arranged a first charge bridging loan to clear the arrears and give him up to 9 months to sell it himself. This removed the repossession order and took away the threat of being evicted.

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