As many mortgages on the sub-prime market are for consolidation purposes, it can prove a little tricky when the lender requires all unsecured debt to be cleared as a condition of the loan. Sometimes this exceeds the maximum LTV required; other times it’s the clients’ income which may fail due to them having to take a larger loan.

Full & Final Settlement is ideal in these circumstances. It allows clients to repay their unsecured debt at an amount which is lower than the balance outstanding. All we do is simply negotiate the settlement of the debts to ensure the clients are paying back the minimum amount possible. We can even gain the settlements before the lender goes to offer so they know exactly how much is required to clear the debts. As there’s less to repay, it improves the LTV required. Full & Final Settlement can be used in any case where there’s unsecured debt to be repaid.

Other brokers have found that by using this as a selling tool, it’s helped to secure the client as they could potentially save £1,000’s. Also, by scouring through their previously cancelled cases, they have managed to generate and resurrect business which was previously deemed wasted.