Case Studies 22k Charge Reduced to 7k

Scenario:

A charge over a property avoided by settling a claim of £22,000 with jut £7,000.
A 53 year old lady was being vigorously pursued by a firm of solicitors acting on behalf of lender following a house repossession that took place many years earlier. The solicitors were rather aggressive and demanded a payment of £15,500 within 7 days against their client’s full claim of £20,873.

Advice Given:

The moment we were instructed to act by the borrower we contacted the solicitors by telephone whereupon they agreed to deal only with us. The borrower had previously acknowledged the debt and had made token payments and the repossession dates confirmed that the lender was entitled to pursue their claim. The £30,000 equity in the borrower’s home was more than sufficient to enable the lender to apply for a charge on the property as their total claim was that of £20,843. This had to be avoided at all costs.

The Outcome:

A one off payment of £7,000 was negotiated in full and final settlement to the lender and included any potential claim with the Mortgage Indemnity Guarantee, MIG. The money was raised by applying to the borrower’s current mortgage lender. Three months later the borrower moved her mortgage to a new lender offering a far more competitive interest rate, nearly 2% less, thereby keeping the same level of mortgage repayment but having raised the sum to broker the deal.