The Ask
A broker approached us with a client who had previous adverse credit and needed a secured loan to consolidate existing debts, alongside a small capital raise for home improvements.
The loan would clear multiple commitments, including two secured loans, defaults and a CCJ, while funding a new boiler and driveway.
The adverse credit stemmed from time off work to care for a family member during a medical emergency, and the borrower is now back in work, using the loan to regain stability and improve their home.
The Challenge
The biggest barrier was the borrower’s recent and significant adverse credit, including three missed mortgage payments in the last 12 months, plus a CCJ and default within the same period.
Affordability also needed careful handling due to non-standard income. The borrower had a main role as a charge nurse, but also earned additional income through bank nursing shifts.
The case required a lender who could take a sensible view and structure the loan in a way that genuinely improved the borrower’s position.
The Fix
We structured the secured loan under our Core 3 product, at a 13.55% interest rate at 67% LTV.
For income, we used both the borrower’s employed role and bank nursing, but capped the bank work at 8 hours per week to ensure the figures were realistic and sustainable long term.
The Outcome
By consolidating the majority of the borrower’s debts, we reduced monthly outgoings by over £200 per month, meaning the borrower improved their position even with a small capital raise included.
With a practical approach to affordability and the ability to use multiple income streams sensibly, Masthaven Finance helped the broker place a case that many lenders would have declined.
If you have a secured loan case involving adverse credit or complex income, get in touch. We’ll sense check it quickly and tell you what’s possible.
