Customer Overview: Self-Employed Couple in Central Scotland Seeking Financial Flexibility
A self-employed woman in her late 40s living in central Scotland and her husband, a private hire business owner, recently sought ways to raise funds for a new business van.
Although their home had substantial equity, their circumstances—having just exited a trust deed and working as sole traders—left them concerned about their borrowing options, especially in the context of previous credit challenges.
Key Challenges: Raising Funds After a Trust Deed and Managing Credit Issues
- Recent exit from a trust deed, impacting credit profiles and access to mainstream credit products.
- Urgent need for funds (approximately £44,000) to purchase a van essential for the family’s primary income source.
- Desire to retain an existing fixed-rate mortgage with a major high street lender, avoiding remortgaging penalties and higher interest rates.
- Complications in verifying business income due to self-employment and reliance on benefits.
Our Solution: A Flexible Secured Loan for Bad Credit Situations
After carefully assessing the customer’s needs, circumstances, and property equity, our specialist adviser recommended a secured loan for bad credit—also known as a second charge mortgage—as the best solution. Here’s why this approach was ideal:
- Allows the family to retain their favourable existing mortgage rate with TSB and avoid remortgaging fees or penalties.
- Secured loan lenders are more flexible with challenging credit histories and do not use traditional credit scoring.
- Bespoke affordability checks consider benefits and other income, helping navigate complex income profiles.
- Funds are secured against the property, leveraging approximately £200,000 in home equity to meet the full amount needed for the van.
- Separate additional monthly payment instead of disrupting the current mortgage.
By focusing on a tailored secured loan option, the customer bypassed the need for a full remortgage, avoided higher rates (which would have come with a remortgage after a trust deed), and ensured swift access to funds—crucial for maintaining business continuity.
Achieved Outcomes: Business Security and Financial Clarity
- Immediate funding solution: The customer was able to proceed toward securing the full £44,000 required, ensuring the business could continue operating and earning income.
- No change to main mortgage: Existing mortgage arrangement remains untouched with no risk of early repayment charges or higher rates.
- Lender flexibility: Access to specialist lenders comfortable with recent trust deed completion and irregular self-employment income.
- Protection of credit profile: As secured loan providers use “softer” checks, applying did not impact the customer’s credit score.
- Clear next steps: A straightforward path to approval—simply providing documentation such as benefit statements and evidence of business income from both partners.
Customer Feedback
“I just thought, well, I could come to you first and ask. It was all a bit overwhelming, but your help explaining everything really made me feel better about what options we had, especially after the trust deed.”
Frequently Asked Questions (FAQs)
Take the Next Step—Unlock Flexible Funding Options Today
If you need to raise funds but are worried about your credit history, self-employment, or protecting your current mortgage deal, our specialist team can help. We offer free, no-obligation advice and will recommend the best solutions for your unique circumstances.
Contact us today to explore secured loans for bad credit, remortgaging options, and more—so you can secure the resources you need with complete peace of mind.
