Many clients approach OVISO when nearing the end of their current mortgage deal. Our client, who wishes to remain anonymous, got in touch with the hope of securing a better interest rate.
The client’s situation proved to be a little more complicated, however, when it transpired that they had £6,000 in credit card debt, an overdraft they were hoping to clear and around £2000 worth of cosmetic work required to their property. Along with this, there was also a sub-part on the client’s current mortgage with an early repayment charge of nearly £450, which would need to be paid in order to remortgage the entire amount on to the same deal. The client’s mortgage payment alone was £737.
Our advisor carefully reviewed the client’s situation and recommended that the debt could be consolidated into the client’s new mortgage in order to decrease their monthly outgoings. It was also advised that the client would be able to take a year off their mortgage term, thus reducing the amount of interest to pay in the long term. This meant that the client’s mortgage payment was reduced to £648.
As a key part of the process, our advisor also assessed the client’s protection needs. The client was married, and showed an interest in protecting their family against potential loss of income and the financial consequences of their death. Our adviser researched the market and presented the client with a plan that would pay out upon death or a diagnosis of a critical illness, along with an income protection policy that would pay the client a tax-free monthly income if they became unable to work.
The total cost of the new mortgage and protection plan came in at just £738, meaning that for just one pound extra per month, the client has now cleared their debts, protected their family, obtained a better interest rate and raised money for vital home improvements.
If you find yourself in a similar position to our client, or would simply like to review your current circumstances, speak to one of our experts today and see how we can help.
Payment Protection Insurance is optional. There are other providers of Payment Protection Insurance and other products designed to protect you against loss of income.