Case Study: Restructure Home Loans
Client Overview
The client is a 66-year-old self-employed individual seeking to restructure for his multiple home loans. He owns four properties, comprising three investment properties and one owner-occupied property currently financed through different lenders. The client’s primary objective was to restructure his existing home loans to obtain a better interest rate and release one of his investment properties.
Challenges Faced
The client encountered several challenges during the loan application process. Prior debt arrears on his mortgage history had made it difficult for his loan applications to be approved in the past. These arrears had created concerns about his capacity to handle additional loans. Multiple properties held by different lenders added complexity to the situation.
AS Mortgage Partners’ Approach
The team understood the importance of finding a solution that met our client’s financial goals while addressing the lender’s concerns about his previous debt arrears and age. A comprehensive strategy was devised to ensure a successful loan restructuring.
1. Adequate Explanation and Documentation
The team meticulously prepared an explanation and documentation detailing the circumstances surrounding the client’s previous debt arrears. The arrears did not indicate a lack of financial capacity but rather an isolated event with valid reasons. The team demonstrated this situation to the potential lender.
2. Illustrating Capacity and Feasibility
The team provided the lender with a clear exit strategy to strengthen the client’s loan application. Considering his age and self-employment status, this strategy showed how the client intended to pay off the loan. By demonstrating the feasibility of the repayment plan, the team addressed the lender’s concerns about the client’s ability to meet financial obligations.
Results Achieved
The team’s expertise and tailored approach led to a successful outcome for our client. The loan restructuring process resulted in the following benefits:
1. Improved Interest Rate
The client secured a better interest rate for his home loans, reducing his overall financial burden and increasing savings over time. This improvement in interest rates translated into more manageable monthly repayments.
2. Release of Investment Property
One of the client’s investment properties was no longer needed as security for the loans. Thanks to the team’s efforts, the client successfully released this property without compromising his financial security.
3. Lender Approval
Despite the initial challenges, the team’s efforts in providing adequate explanations, documentation, and a viable exit strategy satisfied the lender’s requirements. As a result, the loan restructuring was approved, providing the client with peace of mind and financial flexibility.
Conclusion
AS Mortgage Partners’ ability to understand the client’s unique circumstances, develop a comprehensive approach, and effectively communicate with lenders led to a successful loan restructuring for the 66-year-old widow and self-employed client. The client’s financial position was significantly improved by obtaining a better interest rate and releasing an investment property, aligning with his long-term goals and objectives.
At AS Mortgage Partners, we take pride in finding tailored solutions for our clients, ensuring their financial success and security. Check our services for the complete list of Business services customised to assist in your growth and development.
