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A Financial Planner Offering a Lifeline, a Client Achieving Goals
Summary
Our pension client in his early 40s, and KDW manages his retirement planning. At the time of our review, he had recently become engaged and had put his property on the market with a view to downsizing. During our discussions, it became apparent that he had accumulated a significant level of debt, costing him approximately £2,000 per month in repayments. The financial strain was affecting his ability to save for his wedding, plan for the future and make meaningful progress towards his long-term goals.
He had approached his existing bank and mortgage lender to explore debt consolidation through his mortgage, but his application was declined due to his credit profile. As a result, he was considering a bridging loan while he continued trying to sell his property. However, this would simply have postponed the issue and exposed him to borrowing costs of around 12%, with no certainty as to when the property sale would complete.
This case serves as a reminder that financial planning is about much more than investments and pensions. By taking a holistic view of a client's circumstances and acting...
Following a full review of his circumstances, I was able to identify a lender willing to consider a remortgage that incorporated debt consolidation taking into consideration his credit profile. Not only was the rate substantially lower than the proposed bridging finance, but the overall mortgage terms were also more favourable than the renewal offer from his existing lender.
The outcome was transformational. The client was able to consolidate his debts, significantly reduce his monthly outgoings and regain control of his finances. Since then, he has gone on to get married, successfully sell his property (3 years later!), welcome a baby into the family and continue building his pension for retirement—without the financial stress that had previously been weighing heavily on him.
The value of investments and the income from them can fall as well as rise and you may not get back the amount originally invested. The information contained within this case study is for guidance only and does not constitute financial advice.
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