Example:

Your home is worth £100,000.
Your mortgage has £80,000 outstanding.
Your debts are £40,000.

Your mortgage is £550 per month, you are paying your creditors £1,200 a month (most of which is interest. Costing you approx. £10,000 a year!!) and you still have month at the end of the money!

No problems, I'll re-mortgage…

Re-mortgaging will only release a maximum of 85% of the value of your property, giving you £85,000 (less any costs).

Re-mortgage = £85,000
Existing Mortgage = £80,000
Capital Remaining = £5,000
Re-mortgage costs = £3,500 - £4,000
Remainder = £1,000 - £1,500

Hardly enough to pay off a £40,000 debt!

With a re-mortgage you will only get 100% of the value of your property if you have an absolutely clear credit history or you sell the house.

So what can I do?

It's the £20,000 "Asset" that's holding you back and means some solutions are unavailable to you, but once the property is sold you no longer have any major assets making new options available.

But I don't want to sell my home!

Fully understandable and that's where Circular Finance come in. We buy your house for £85,000 and set your rent at £450 a month.

We calculate your essential outgoings and after a confidential discussion with you, agree that you can afford £350 per month to pay to your debts. You decide to go for an IVA over 5 years. This means an arrangement with the creditors to pay them £21,000 over the next 5 years at £350 per month.

And after 5 years….?

With the IVA completed you buy your house back!

Circular Finance will help fund the required down payment and organise the most competitive mortgage for you.

Result!

You have just cleared £40,000 worth of debt, there was no interest on the debt over the 5 years and more importantly you didn't have to move house.

You have now bought your home back, have an extra £350 every month and what's more, nobody, other than you, knew a thing about the trouble you were in.