Client Scenario: Veronica's Debt Consolidation
Full case study: Full Case Study 2 — Veronica: Remortgage and Debt Consolidation. Walks through the adviser's analysis end-to-end.
Client Background
Objective Veronica wants to consolidate her unsecured debts into her mortgage to reduce monthly outgoings and find a better mortgage rate.
Which term matches: "property value £285,000; existing mortgage £138,000 (fixed rate; ERC expires in 6 months); 15 years remaining"
What does "Existing unsecured debts" mean?
Match each term in "Client Background" to its meaning
Tap a term, then tap its matching definition.
Fill in the blank
______ — £3,500
Mortgage Assessment
Equity available: Current value £285,000 − outstanding mortgage £138,000 = £147,000 equity. Total debts to consolidate: £8,500 + £6,200 + £4,000 = £18,700.
True or false?
Equity available: Current value £285,000 − outstanding mortgage £138,000 = £147,000 equity
Debt Consolidation Advice — Critical Considerations
The adviser MUST address the following with Veronica and document it in the suitability report: Total interest cost: Veronica will pay a lower monthly rate on the consolidated mortgage but over a long…
True or false?
The adviser MUST address the following with Veronica and document it in the suitability report:
Recommendation: Consolidation appropriate IF Veronica understands the risks documented above and
cancels the credit cards post-consolidation. If unsure about her ability to manage credit going forward, advise against. ERC Consideration ERC expires in 6 months. Options:
True or false?
cancels the credit cards post-consolidation
Protection Needs Analysis
Veronica is single with no dependants. Protection priorities: Income protection: As primary earner with a mortgage; NHS sick pay is good (6 months full + 6 months half) but there is a gap after 12 mon…
True or false?
Veronica is single with no dependants
Quick recap
Lock in the essentials before moving on.
True or false?
cancels the credit cards post-consolidation. If unsure about her ability to manage credit going forward, advise against
True or false?
ERC Consideration ERC expires in 6 months. Options: