Senior Mortgage Advisor
Case 1
Mortgage with a debt management plan
The clients enquired with us in 2019 as they were stuck on a really high standard variable rate with Halifax because they had entered a debt management plan (DMP) since taking the mortgage out. Halifax were refusing a product transfer and they couldn't find any other lenders to take them on with the DMP outstanding.
They entered the DMP when the husband suffered with severe mental health and couldn't work for a prolonged period. At the time they came to Teito, he had been back in work for three years and they had maintained the DMP for four, but still had £36,000 outstanding which they were keen to pay off so their credit profiles would improve. This would allow them to get a better mortgage rate and ultimately move on with their lives.
They also had some necessary and cosmetic home improvements they wanted to do to the property. Although their incomes had increased significantly since they took out their mortgage and they could afford to borrow the extra money, nobody would lend to them because of the DMP.
I managed to secure them a specialist DMP product with Pepper Money which enabled them to remortgage onto a better rate than the Halifax SVR, raise money to completely clear the DMP and also raise £38,000 for their home improvements.
In 2021, I was then able to remortgage them to Loughborough Building Society as the DMP had been satisfied for two years and they met the requirements. This enabled them to secure a better rate than those available with Pepper. I knew that Loughborough only required two years at the time I submitted the Pepper Money mortgage, which is why I only recommended a 2-year fixed rate. Loughborough's rates were better than Pepper's for these particular clients.
Most recently, in 2023, I was then able to finally remortgage them to a high street lender, Halifax! This was because by that point their credit scores/profiles had significantly increased and the DMP had also been cleared for over three years. They were over the moon as when they first came to Teito they never dreamt that they would qualify for a high street lender again. This was only possible because I secured them the Pepper Money mortgage which enabled them to clear the DMP. If I had not done that then they would still be repaying the DMP now!
All clients' names and personal information have been excluded from these case studies to maintain their anonymity
