First Time Buyer Mortgage with Bad Credit

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The Client:  Our client is a First Time Buyer. They are seeking a residential mortgage to purchase a house for themselves to live in. They have a good income and […]

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The Client: 

Our client is a First Time Buyer. They are seeking a residential mortgage to purchase a house for themselves to live in. They have a good income and are employed, but they have some bad credit including defaults and CCJs that were registered over 3 years ago, but have not been satisfied. They are also a Foreign National, but have indefinite leave to remain in the UK. The client has a 15% deposit.  

The Scenario: 

There are some difficulties with this situation. The fact they have CCJs and defaults have impacted their credit report in quite a negative way. The other issue here is the fact they are not “satisfied” i.e been paid off, so remain outstanding which a lot of lenders do not like to see. The final thing to consider here is that the client is a foreign national, but has indefinite leave to remain. 

The Solution: 

Being a whole-of-market Broker, we have the knowledge to know that some lenders are more lenient when it comes to previous bad / “adverse” credit and also the bad credit is still outstanding and hasn’t been satisfied.  

There are a few lenders that will manually make a decision on the viability of an application, rather than let a computer make the decision. The lender we went to for this client has a tiered rate system that gets better the longer ago the CCJ’s or defaults were registered. Most importantly they do not need to be satisfied. The fact they are a foreign national doesn’t matter as they have indefinite leave to remain, they are treated as a UK citizen for the purposes of the mortgage. The deposit is 15% is the minimum for this scenario. 

Discover our First Time Buyer Mortgage services. 

Summary: 

It is possible to get First Time Buyer Mortgages in extremely complicated scenarios, and situations that would usually seen as undesirable to most lenders.   

Key things to consider for First-time Buyers: 

  • Some lenders will allow historic bad credit. 
  • Some lenders will allow bad credit that was registered years ago, but still not satisfied 
  • Indefinite leave to remain allows the client to get treated as a citizen for the purpose of a mortgage 
  • Some lenders will lend up to 85% with bad credit 

If you are interested in finding out more about First Time Buyer Mortgages then either call us today on 03330 166 600 to speak directly with one of our CeMAP qualified Mortgage Advisors. Alternatively, simply complete this short online form to send us an enquiry and one of the Team will call you asap.  

The Promising Buy-to-Let Outlook in the UK in 2024: A Comprehensive Guide

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Introduction As we look ahead to the year 2024, the buy-to-let market in the UK shows great potential for investors. With a stable economy and a growing demand for rental […]

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Introduction

As we look ahead to the year 2024, the buy-to-let market in the UK shows great potential for investors. With a stable economy and a growing demand for rental properties, this sector offers lucrative opportunities. In this blog post, we will explore the buy-to-let outlook in the UK in 2024, highlighting key factors that contribute to its growth and providing valuable insights for potential investors.

Economic Stability and Market Growth

The UK’s economy has shown resilience and stability over the years, making it an attractive destination for property investors. In 2024, the country’s economy is projected to continue its growth trajectory, creating a favorable environment for buy-to-let investments. Factors such as low interest rates, a strong job market, and government initiatives supporting the housing sector contribute to the overall market stability and growth. As a result, buy-to-let investors can expect steady rental yields and potential capital appreciation in the years to come.

Increasing Demand for Rental Properties

The demand for rental properties in the UK has been steadily increasing, driven by various factors such as changing demographics, lifestyle preferences, and affordability constraints. In 2024, this trend is expected to continue, presenting buy-to-let investors with a promising market. The younger generation, particularly millennials and Generation Z, are increasingly opting for rental properties due to flexibility and affordability. Additionally, factors like rising property prices and stricter mortgage lending criteria make it challenging for many to enter the property market, further boosting the demand for rental accommodations.

Discover our Buy to Let Mortgage Broker services.

Regional Opportunities and Emerging Hotspots

While the buy-to-let market in the UK as a whole shows positive prospects, it’s essential to consider regional variations and emerging hotspots. Cities like Manchester, Birmingham, and Leeds have witnessed significant growth in recent years, offering attractive investment opportunities. These regions benefit from strong local economies, development projects, and a thriving rental market. Additionally, government initiatives to promote regional growth, such as the Northern Powerhouse and Midlands Engine, further enhance the investment potential in these areas. Investors should carefully research and consider the local market dynamics and rental demand to maximize their returns.

Evolving Tenant Expectations and the Importance of Property Management

In 2024, tenant expectations are evolving, and property management plays a crucial role in attracting and retaining tenants. Today’s renters seek well-maintained properties with modern amenities and convenient locations. As an investor, it’s important to invest in property management services or develop a solid plan to ensure your properties meet these expectations. Providing exceptional customer service, proactive maintenance, and efficient communication channels can help build a positive reputation and secure long-term tenants, ultimately maximizing your rental income.

Conclusion

The buy-to-let outlook in the UK in 2024 appears promising, thanks to the country’s stable economy, increasing demand for rental properties, regional opportunities, and evolving tenant expectations. Investors who conduct thorough research, consider emerging hotspots, and prioritize effective property management are well-positioned to benefit from the growth and profitability of the buy-to-let market. By capitalizing on these opportunities and staying informed about market trends, investors can navigate the buy-to-let landscape successfully and achieve long-term financial success.

If you have any questions relating to Buy to Let Mortgages, contact us today to speak directly with one of our CeMAP certified Mortgage Advisors. Call us today on  03330 166 600. Alternatively, please complete this short online form one of our Advisors will call you right back.

Buy to Let Remortgage for Loan Repayment – Case Study

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The Client  The client was seeking to remortgage an unencumbered Buy to Let property in order to release funds to repay an investor who helped the client to initially purchase […]

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The Client 

The client was seeking to remortgage an unencumbered Buy to Let property in order to release funds to repay an investor who helped the client to initially purchase the property.  There was an agreement/contract in place to repay the investor within an agreed timeframe. 

 
The Scenario 

The property had no working kitchen or bathroom, meaning that the property is classed as not mortgageable. 

With regards to the mortgage purpose to repay an investor who was actually the client’s father, this had to be referred to the underwriter for further assessment.  The mortgage amount was falling short by £25,000 to repay the investor and posed challenges to place with lenders. 

The Solution 

As the property had no working kitchen or bathroom and deemed not to be mortgageable, the best placed lender we secured was happy for the client to complete the necessary works before the completion took place and the valuation of the property was to be performed only once works had been completed.  

The mortgage amount wasn’t enough to repay the investor in full, and the client fell short by £25,000 and the lender wanted the client to confirm how the remaining £25,000 would be repaid to the investor.  The client provided and explanation to the lender and the lender was happy to proceed. 

The lender also wanted to ‘follow the money’ that was provided by the investor for anti-money laundering purposes and requested that the investor was to provide bank statements showing the money trail.  The investor was able to produce bank statements evidencing the trail of funds.  

In addition to this, the lender also required a bank statement from the investor to show the source of funds paid to the solicitor for the Buy to Let purchase and this was also provided. 

Based on all of the above the lender was able to proceed.   

The client had approached other mortgage brokers and they informed the client they were unable to help due to the nature of the case. However, at Commercial Finance Network we achieved what other brokers couldn’t and this resulted in a very happy client. 

Summary: 

Whole of market Mortgage Brokers with CeMAP qualified Advisors are always able to look at creative ways in which to solve solutions such as this. 

If you have any questions relating to Buy to Let Mortgages, contact us today to speak directly with one of our CeMAP certified Mortgage Advisors. Call us today on  03330 166 600. Alternatively, please complete this short online form one of our Advisors will call you right back. 

Second Mortgage Debt Consolidation – Case Study

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The Client:  Our client’s objective was to consolidate as much unsecured debt as possible including credit items with interest rates as high at 29.9% and some with low to 0% […]

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The Client: 

Our client’s objective was to consolidate as much unsecured debt as possible including credit items with interest rates as high at 29.9% and some with low to 0% interest rates, which were scheduled to shortly revert to 20% plus rates in a few months’ time.  In addition to some personal loans, the Client was finding it difficult to cope and very stressed. 

Scenario: 

The client’s financial circumstances deteriorated due to Covid 19 pandemic when the client had been put on furlough.  The credit was taken out to supplement the client’s income during this financially difficult time and resulted in a negative disposable income situation for the client.  The client wishes to consolidate all of these items onto better terms with just one low monthly repayment and to give the revolving credit a definite end date. The client understood that if action wasn’t taken now, they would not be able to meet the monthly payments to their unsecured creditors and could have an adverse impact on the client’s credit file and any future remortgage options. 

The Solution: 

A Second mortgage was raised for the client.  This in turn protected their existing mortgage rate and not having to pay the early repayment charge with the existing mortgage lender.   

The second mortgage reduced the client’s monthly outgoings from £1,600 per month to a more comfortable repayment of £450 per month.  This is turn helped the client to keep their credit report intact, and the client was no longer in a negative disposable income situation and had funds left over for a better quality of life and funds left over for any life events. 

The pressure and stress was fully removed from the client.  The client only needed to focus on paying the first charge mortgage and the second charge mortgage, rather than having to manage multiple creditor payments each month for the unsecured credit. 

By settling all the unsecured credit this also helps the client to be in a better position for remortgage options in the future when their fixed rate ends.  The second mortgage was offered at a fixed rate to fit in line when the first mortgage fixed rate ends.  The client will then be able to remortgage when both the fixed rates end on the first and second mortgage without incurring early repayment charges. 

This resulted in a very happy client and a returning customer for the remortgage. 

Summary: 

Second Charge Mortgages can be a great solution for clients wishing to consolidate multiple expensive sources of credit into just one loan, as well as a great solution to also release equity from their home. Second Charge mortgages run alongside the existing (First Charge) Mortgage and therefore no expensive Early Repayment Charges (ERCs) are incurred. 

If you are interested in finding out more about Second Charge Mortgages then either call us today on 03330 166 600 to speak directly with one of our CeMAP qualified Mortgage Advisors. Alternatively, simply complete this short online form to send us an enquiry and one of the Team will call you asap. 

Complex Residential Purchase Multiple Income Sources – Case Study 

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The Client:  There is one applicant, who is trying to buy his first home. The client has two jobs, one in which he is employed and the other in which […]

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The Client: 

There is one applicant, who is trying to buy his first home. The client has two jobs, one in which he is employed and the other in which he is self-employed. 

The Scenario: 

The client is a first-time buyer. He has a good deposit and wants to buy a home. He works employed and remotely for a family company, but has only started this in the last 6 months or so. This brings challenges as most lenders look at this and assume he has taken this role on for the purpose of affordability. He also has self employed income from driving and he has only been doing this for about 18 months. This is difficult because most lenders will only accept self-employed income that has two years track record and is provable for that period of time.  

Finally, the last problem with this particular scenario is that he is relocating to a city quite far away. This brings with it the question of can his self-employed work be replicated and can his employed role really be done remotely.  

The Solution: 

Being a whole-of-market Broker, we have the knowledge to know that some lenders will not hold it against someone that they have started working for a family company recently. We also know that there are lenders that make it a USP that they will accept one year’s worth of accounts for self employed income.  

As a specialist, we are also aware of the lenders that are relaxed about people moving far from their current location, as long as it all makes sense. With this knowledge we got the client a full mortgage offer quickly, and they were extremely grateful for our expertise.  

Discover our Residential Mortgage Broker services. 

Summary: 

It is possible to secure mortgage lending even in extremely complicated cases and situations that would be considered as undesirable to most lenders.   

Key things to consider for scenarios such as this: 

  • Some lenders will allow employment by a family company, started recently. 
  • Some lenders will accept 100% of multiple sources of income. 
  • Some lenders will allow self employed income with less than 2 years track record. 
  • Some lenders take a relaxed view of moving across the country, as long as it’s viable and makes sense. 

Summary: 

Whole of market Mortgage Brokers with CeMAP qualified Advisors are always able to look at creative ways in which to solve solutions such as this. 

If you have any questions relating to Residential mortgages, contact us today to speak directly with one of our CeMAP certified Mortgage Advisors. Call us today on  03330 166 600. Alternatively, please complete this short online form one of our Advisors will call you right back. 

Residential Purchase using Let to Buy and BTL – Case Study 

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The Client: Married couple seeking to raise funds for a new residential purchase. Client’s both own a Buy to Let property each and their current residential property. Scenario: The clients […]

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The Client:

Married couple seeking to raise funds for a new residential purchase. Client’s both own a Buy to Let property each and their current residential property.

Scenario:

The clients were short on funds for the new purchase and are looking at creative ways in which to raise the finance.

“Mr” is a contract worker and has been for 27 years. However, Mr had a break between contracts and lenders as a rule do not like this, so this proved difficult to arrange a new residential mortgage. “Mrs” is also a fixed term contract worker but as Mrs has worked for the same company for the last 2 years and as there is no end date to the contract, the lenders were happy to use Mrs’s income; but not Mr’s so affordability for the whole scenario to work was a struggle.

The Solution:

A Let to Buy Mortgage was raised on the existing residential property, raising funds to put towards the new purchase using the projected rental income for affordability.

We used Mrs Buy to Let property to raise funds towards the residential purchase, which again is self-funding from the rental income.

The result was a very happy client and they are now able to purchase their new residential property.

Summary:

Whole of market Mortgage Brokers with CeMAP qualified Advisors are always able to look at creative ways in which to solve solutions such as this.

If you have any questions relating to Residential mortgages, contact us today to speak directly with one of our CeMAP certified Mortgage Advisors. Call us today on  03330 166 600. Alternatively, please complete this short online form one of our Advisors will call you right back.

Portfolio Landlord Residential Purchase with Multiple Income Streams – Case Study

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The Client: There are two applicants. The main applicant has three sources of income. One is employed, one is self-employed and one has property income. The client also has a […]

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The Client:

There are two applicants. The main applicant has three sources of income. One is employed, one is self-employed and one has property income. The client also has a fair amount of unsecured finance and he doesn’t want it to impact his affordability. He will be paying it off before completion.

The Scenario:

The clients do not own their own residential property. They are living with family, however the gentleman owns 3 buy-to-lets in his personal name and has 27 buy-to-lets in a limited company. They want to purchase a residential. They are not first-time buyers, so this is not an issue, however, we do need to borrow as much as possible.

The gentleman’s employed income is simple – he has a second self-employed source of income, but it’s important to make sure you use a lender that takes 100% incomes from both. The most interesting aspect of this is the buy-to-let income – some lenders will take in to account all the mortgages against a client’s name which will seriously adversely affect affordability. As he also will be consolidating debts before completion from his own sources to maximise the loan amount, but it’s important to use a lender that will discount it from the calculation. Not all lenders do and it impacts significantly the loan amount possible.

Discover our Residential Mortgage Brokerservices. 

The Solution:

Being a true whole-of-market mortgage Broker, we have the knowledge to know that some lenders will discount debts that will be consolidated before completion of the mortgage, from own funds or using the money being raised. We also know who will allow someone to have a large portfolio and accept multiple sources of income without using the mortgages on the buy to lets against them.
Through our experience and knowledge, it helps us know who will take 100% of multiple income types to really squeeze the most out of the loan. This is always advantageous to clients.

Summary:

It is possible to get lending on extremely complicated setups and situations that would seen as undesirable to most lenders.

If you have any questions relating to Residential mortgages, contact us today to speak directly with
one of our CeMAP certified Mortgage Advisors. Call us today on 03330 166 600 . Alternatively, please
complete this short online form and one of our Advisors will call you right back.

Residential Purchase – Part Foreign National – Case Study 

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The Clients:  The clients were a married couple who had recently moved back to the UK to reside full time. The first applicant was British born, with the other being […]

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The Clients: 

The clients were a married couple who had recently moved back to the UK to reside full time. The first applicant was British born, with the other being a Foreign National on a visa to reside in the UK. They were looking to purchase a residential home for themselves and their family.  

Discover our Expat Mortgage Broker services.  

The Scenario: 

The clients owned a residential property in Canada which they sold before moving to the UK. They were both in full time employment, however as they had been out of the country for a long period of time, they had been working hard to build up a good credit score to support their application.  

The Solution: 

Being a whole-of-market Broker, we had the knowledge to know that some lenders would consider a Foreign National on the application with no restrictions if the first applicant was British.  
 
The clients were looking at achieving 90% loan to value, which would not be possible with most lenders because of the status of the Foreign National. By using our expertise, we were however able to find a lender who would accept 90% loan to value and secured a formal Mortgage Offer within 2 weeks of submitting the full application. 

Summary: 

It is possible to get lending with no restrictions if you have a joint application with one British national and one Foreign National applying together.  

Key things to consider: 

  • Some lenders will accept foreign nationals with a British national. 
  • Some lenders will consider no loan to value restrictions with this setup. 
  • Some lenders will allow lending in this scenario once you have been in employment for 6 months. 
  • Some lenders will a low credit score due to not having built up credit, if one applicant has a high credit score. 

If you have any questions relating to Residential mortgages, contact us today to speak directly with one of our CeMAP certified Expat Mortgage Advisors. Call us today on 03330 166 600. Alternatively, please complete this short online form and one of our Advisors will call you right back.   

Residential First Time Buyer Shared Ownership – Case Study

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The Client:  The client came to us as a first-time buyer looking to purchase their first home. The client was interested in the Shared Ownership Scheme and had put down […]

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The Client: 

The client came to us as a first-time buyer looking to purchase their first home. The client was interested in the Shared Ownership Scheme and had put down a deposit, securing the plot.  

Discover our Residential Mortgage Brokerservices. 

Scenario: 

The client was purchasing 25% of the property from the Housing Association and needed to move quickly, as the development was nearing completion and an exchange deadline had been set and had to be met to avoid the client having to pay additional fees and penalties.  

The Solution:  

As a whole of market mortgage broker, we were able to search the market to find a High Street Lender who was happy with the Shared Ownership Scheme. A desktop valuation was carried out confirming that the property purchase was suitable and a Mortgage Offer was produced for the client within just one week of full application being submitted.  

It was then over to the legal teams who worked efficiently in getting the matter to exchange by the deadline provided, so the client did not incur any penalties or additional fees. 
 
Summary:  

Shared Ownership can be a great way for clients to get onto the property ladder who otherwise may not be able to if buying 100% of the property. Our specialist advisors have the knowledge and tools to find suitable lenders for everyone, working quickly to make sure our clients can secure their dream homes. 

If you have any questions relating to Residential mortgages, contact us today to speak directly with one of our CeMAP certified Mortgage Advisors. Call us today on 03330 166 600. Alternatively, please complete this short online form and one of our Advisors will call you right back.