Debt Consolidation

We have similar criteria to that of a regular bank, but we also have the added benefit of helping customers with bad credit scores. Our main focus is to place the customer in a better financial position than what of the current situation. In other words the customer’s cash flow must improve and the credit score must be repaired as fast as possible.

The first criterion is that the consolidation loan to value of the mortgage may not exceed 75%. In other words if the property value is R1000000.00 the maximum mortgage may not be more than R650000.00. This is the total consolidation amount of all the smaller loans as well as the mortgage. There are times that we will do more than 75% LTV, but that will be in very special situations.

The normal repayment to income ratio is applicable namely 30%. So if your income is R30000.00 per month, your monthly repayments may not exceed R9000.00.

A valuation will be done on the property that will confirm the stated valuation form client.

The client may not apply for new credit for 6 months and may not use current credit lines, like credit cards. We need to do this to help our client with the rehabilitation process to correct his credit record. All credit accounts will be closed and paid in full.

The rehabilitation process normally takes 6 months. In this time all debt is repaid. This includes the current mortgage, credit cards and any other loans. In this time when the consolidation and rehabilitation is done the interest will be higher than the prime bank rate.

All finances are managed for the client. This includes the repayment of all debt to creditors during the rehabilitation and consolidation. No funds will be paid to client. All funds are controlled by us. We will repay all creditors on your behalf. No additional lending on property will be done. Only current debt will be repaid.

Loans will be a minimum of R250000.00 and a maximum of R2000000.00

The main objective by the consolidation and rehabilitation is to rectify the customer’s credit record. The customer’s credit record must be so that the customer can go to any regular high street bank and obtain a regular mortgage.