How we've helped people just like you
Mr & Mrs A's story
Mr & Mrs A were both working and both had well paid jobs. He also had a passion for nice cars and bought himself a second hand but top of the range Jaguar XJ. Wanting to ensure that his wife was not left out, he purchased a sporty new Peugeot for her, both on finance with a minimum deposit.
The Jaguar was his pride and joy and he spent a lot of time keeping it perfect. They could afford these monthly repayments and although they had to be a little careful how they spent their money, they were not in financial straits. Unfortunately though, a number of items in the home starting breaking down shortly afterwards.
First of all, the washing machine stopped working, then the boiler. As they had spent all their spare money for the deposit on the cars, they had no spare money so they had to purchase these items on credit. These monthly repayments began to build and their bank account started to go in to the red each month. This was made worse when the Jaguar developed an expensive fault. As he needed the car to get to work, their only option was to take on a loan to pay for this.
Each month, their bank account went further in to the red. Initially, the bank agreed an overdraft but as they kept exceeding this, it reached the point when the bank demanded repayment of the overdraft. This couple had already run up credit card debts to cover their monthly expenses and debt repayments. They had nowhere to go and were terrified whenever the post arrived as it may bring further bills or demands.
Fortunately, the owned their own home and only had a £76,000 repayment mortgage on a £200,000 home. Even though this couple were a bad risk for borrowing, Homesaver arranged for them to remortgage to cover the outstanding debts, which reduced their monthly payments to a level that they could afford to pay, as well as live. This enabled them to keep their cars, stop worrying and start living a little again too!
Ms B's Story
Ms B is a small business person. She ran a successful pub, owned her own home with a mortgage and had also inherited her parents’ home, which she rented out. In one year, the lease on the pub went up substantially, new legislation required substantial alterations to the pub to meet the latest standards, which required the purchase of several items of very expensive pieces of equipment.
At the same time as she had to make these capital payments, there was a downturn in business and her income was unable to meet all the monthly payments. As all the capital had been spent, she started running up both a personal and a business overdraft. The bank was helpful at first but as the debt started mounting each month, she found herself in a position where her business and therefore her income was in jeopardy.
She had no credit card debt but she did have a loan and a bad credit history with her bank because of this. Despite this, as her mortgage was only small however, Homesaver was able to remortgage to bring her outgoings down to a manageable level. At the same time, Homesaver arranged the loan so that she was able to obtain income tax relief and therefore further reduce her outgoings. This enabled her to keep her business and to gradually improve her financial position over a period of time. Without this, she would have lost her capital, her business and therefore her income and would have been forced to sell her business at a vulnerable time.
