The Client
The client was an existing homeowner looking to move into a larger residential home with her husband to start a family. She approached us because her husband could not go on the application, having an adverse credit history.
The Scenario
The client had already approached her existing mortgage provider directly, who told her she could not borrow the amount she needed based on how they stress-tested her income and expenditure. She had some credit card debt and a personal loan, with the loan due to finish in under six months from the date of application.
The Solution
We secured the client a mortgage with a high street lender willing to disregard the personal loan payments, given how little of the term remained. The lender requested no supporting documents beyond the signed mortgage declaration, since the client’s salary from her employment was paid into a current account held with the same bank – some high street lenders can verify income this way, which allows for a considerably smoother and faster client journey.
The Outcome
The application was submitted at 10:15am. The lender completed an automated valuation that same day, confirmed the property as suitable security, and issued a binding mortgage offer before 4pm – all within a single working day.
Frequently Asked Questions
Can a personal loan close to ending be excluded from mortgage affordability calculations?
Some lenders will disregard a loan commitment if it is due to finish shortly after the mortgage application.
This varies significantly between lenders, so it is worth checking a lender’s policy on this before assuming a loan will count against you.
Can a mortgage be approved on the same day it is submitted?
It is possible in the right circumstances, though it is not the norm.
Same-day approval usually depends on the property qualifying for an automated valuation and the lender already holding evidence of the applicant’s income.
Can I apply for a mortgage without my partner if they have adverse credit?
Yes, a mortgage can be applied for in one name only.
Doing so means the application is assessed on that person’s income and credit history alone, which can be the right approach where a joint application would be affected by one partner’s credit history.
Do lenders always require full income documentation for a mortgage?
Not always – some high street lenders can verify income directly if your salary is paid into an account held with them.
Where this applies, it can remove the need for payslips or bank statements entirely, speeding up the process considerably.
If you have any questions relating to a residential mortgage, contact us today to speak directly with one of our Mortgage Advisors.
UK Mortgage Broker is a whole-of-market broker directly authorised and regulated by the Financial Conduct Authority. Your home may be repossessed if you do not keep up repayments on your mortgage.
Call: +44 1628 969 500
Email: info@uk-mortgagebroker.co.uk
Related Pages
- Residential Mortgages – whole-of-market advice for homeowners across the UK
- Bad Credit Mortgages UK – specialist advice for borrowers with adverse credit history
- Mortgage Affordability UK Explained – how stress testing works and what really limits your borrowing