• A business failure led to a loss of financial control and mounting arrears for couple, Trevor and Irene
  • Just before applying for a mortgage, they temporarily had a period of reduced income due to the need to care for a sick relative
  • Selling their large country home helped clear their debts
  • Although back at work with sufficient income, their credit record showed they had been four months in arrears
Case type: Previous financial difficulties    


Trevor and his wife, Irene, ran a successful recruitment consultancy in Huddersfield. The business had grown steadily in the early 2000's meaning they were able to afford a large country home and a prosperous lifestyle. 

Unfortunately, the economic downturn took its toll on both their business and their personal finances. As work and income dried up, they began to fall behind with their mortgage repayments. When their business eventually failed, they were declared bankrupt so decided the time had come to sell up and clear their debts. 

They moved into rented accommodation and found new jobs as employees of a recruitment business before deciding it was time to get back on the housing ladder.  

The issues

Although Trevor and Irene were both back in work, earning good salaries and had paid off their past debts, their credit record still showed they'd been in arrears.

Furthermore, just before applying for a mortgage, they had to temporarily reduce their working hours to care for a sick relative. They arranged with their employer that they'd take a reduced salary for a three-month period.

Garry Nicholson, mortgage adviser says:

"Borrowers who have been set back by an unexpected life event often get back on their feet fairly quickly, but the effects of an adverse credit record can be longer lasting. 

This was a case that clearly demonstrated the benefit of everyone involved - borrowers, lender, underwriter and employer - all working together effectively to ensure a successful outcome. 

As always, the devil is in the detail and it was important to provide Pepper Money with the necessary supporting documentation, but that was made possible by the willing cooperation of Trevor, Irene and their new employers."

The solution

Trevor and Irene asked mortgage adviser, Garry Nicholson, for help. 

"The loss of their business was a bitter blow for Trevor and Irene, as was having to leave their beautiful country home, but selling up enabled them to regain control of their finances and their lives," explains Garry.

"A setback such as this doesn't last forever and Trevor and Irene were quickly back in work and earning good money. The mortgage they were applying for would cost them no more than the rent they were paying and their joint incomes comfortably covered their repayments."

"The challenge was providing Pepper Money with paperwork to show they had repaid all their debts and that their three-month salary reduction was only a temporary situation. 

Fortunately, their employer was very helpful, as was Pepper Money's underwriter who bent over backwards to give this application the best possible chance of success."

This case study is based on criteria in effect at the time this case was submitted and reviewed by Pepper Money. We reserve the right to change or amend our criteria at any time. All our stories are based on real cases but the names have been changed.


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