Why consolidation is the topic to address with clients

The important thing to remember is that whilst we will all have to adjust to the increase in annual gas prices, or fuel costs (whether you have a diesel or petrol vehicle) there are clients in circumstances where these changes do not just result in mild frustration and a reduction in an ample monthly surplus. Many clients will be materially impacted, and without action their ability to meet their monthly bills - or at least feel comfortable in their financial position - is put at risk.

As individuals we are thankfully now much more aware of the importance of mental health. Whilst we may be better equipped to manage the stresses and anxieties such as those caused by money worries, there are practical solutions that can be taken to alleviate these problems. Often overlooked or discounted, the second charge mortgage market is a valuable tool that can be utilised to make a truly positive difference to a client’s financial circumstances and their wellbeing.

Over the years I’ve seen many second charge cases, ranging from clients with good credit profiles but have over-committed and are now stretched (although maintaining payments), through to clients that have experienced adverse credit events such as CCJs, defaults, or worse. The common theme, regardless of their credit history, is that they’re struggling with their credit commitments.

What’s also true is that there’s always a ‘reason why’ which is what makes us and our lenders different as we listen and take a ‘common sense’ approach. Ultimately and above all of this, my team and I are fortunate to be in a position to help clients find sustainable solutions that are right for them.

The fact is that for a sustained period of time the rate of inflation has been kept in check. Additionally, many people have felt the benefit of reduced commuting costs and discretionary spend throughout the pandemic. Now with a leap in the rate of inflation and life feeling like it is returning to normal, people will feel the financial and emotional strain of many challenges hitting them all at once.

For this reason, we feel it is critical that all mortgage intermediaries consider and actively explain the options to consider in respect of debt consolidation, whether that be with a remortgage, second charge mortgage or unsecured borrowing.