Debt Consolidation via Second Charge Preserving a Legacy Tracker Rate
£72,000 · 12 years · 7.35% fixed. A homeowner was carrying £72,000 of high-interest unsecured debt but held a legacy lifetime tracker mortgage at Bank of England base rate plus 0.49% - one of the most valuable mortgag...
The Client
Homeowner
The Challenge
A homeowner was carrying £72,000 of high-interest unsecured debt but held a legacy lifetime tracker mortgage at Bank of England base rate plus 0.49% - one of the most valuable mortgage products in existence. Remortgaging to consolidate the debt would mean losing the tracker rate forever.
Our Solution
Doulton placed a second charge behind the legacy tracker, consolidating all the unsecured debt at a rate far below the unsecured interest rates (ranging from 14% to 22%) while leaving the priceless tracker completely untouched.
The Outcome
£72,000 of unsecured debt consolidated. Monthly saving versus continuing to service unsecured debt: £680. Legacy tracker mortgage fully preserved. The client's financial position transformed without sacrificing the tracker rate. Key highlights: Legacy lifetime tracker mortgage 100% preserved; £680 per month saving versus continuing unsecured debt service; Debt rates of 14--22% replaced with second charge rate.