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Residential Mortgage – Same Day Mortgage Offer – Case Study

The Client

The client was an existing Homeowner who was looking to move into a larger home to start a family with their Husband. The client approached us as her husband could not go on the application since he had an adverse credit history.

History

The client had previously approached her existing mortgage provider, who had told her that she could not borrow the desired amount due to how they were stressing her income and expenditure.

The client had some credit card debt and also had a personal loan. The personal loan was due to finish in less than 6 months from the date of application.

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The Resolution

We managed to secure the client a mortgage with a High Street lender who would disregard the loan payments due to the remaining term. The application was submitted at 10.15 in the morning, the lender completed an automated valuation on the same day and confirmed that the property was a suitable security and had issued the binding mortgage offer before 16.00 the same day.

The lender requested no documents other than the signed mortgage declaration. This was possible as the clients salary from her employment was paid into a current account with the same bank. Some High Street lenders can check incomes in this way and it allows for a smooth and efficient client journey.

To know more and speak to one of our Residential Mortgage Expertscall us now on 0333 0166 600. You can also fill in this short online form to get started. Our team of Residential Mortgage Experts will get back to you straight away.

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Limited Company Buy to Let Purchase – Case Study

We recently had a client make an enquiry about purchasing a property through his Limited Company in order to expand his Buy to Let portfolio. The company is an SPV (Special Purchase Vehicle) that has been set up for a while, and has two existing properties within it. The applicant that called also has one other Buy to Let in their own personal name.

There are three applicants in total, applicant two earns £12,000 PA and applicant three earns £11,000 PA, the main applicant earns £45,000, rising up to £72,000 PA, with shift and danger allowance. The second and third applicants do not currently own any other Buy to Lets. The second applicant doesn’t own any property at all.

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We went through the fact find with each client and asked the relevant credit questions. We were informed that everything was ok, and there shouldn’t be any adverse credit. However, the DIP (Decision in Principle) was declined based on adverse credit with applicant two’s credit file. We requested a copy of the credit report, and unfortunately there was a number of historical Adverse Credit issues on there.

We then re-sourced the deal, and found a lender that would accept the relevant adverse, as long as there was no adverse within a certain time frame. We managed to place the deal, and it was accepted. Now the client is in a better position to not only purchase and increase his portfolio, they are also in a better position to remortgage when the time comes, and achieve a better rate.  Things to consider:

  • 3 applicants are acceptable, especially within limited company
  • Not all clients need to own an existing property
  • An income over a certain threshold is not necessary, as long as they have an income that they can prove
  • Adverse credit doesn’t necessarily mean they are unable to get a mortgage

To know more and speak to one of our Buy to Let Mortgage Expertscall us now on 0333 0166 600. You can also fill in this short online form to get started. Our team of Buy to Let Mortgage Experts will get back to you straight away.

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Residential Remortgage with Adverse Credit – Case Study

A client recently called in with an enquiry with regards to mortgaging his existing property and the basic fact find details were taken.

The information provided resulted in discovering that there were two kitchens in the property and the client had some bad credit which he has now consolidated. He currently owns the property with his mother.

The client wanted his mother taken off the Mortgage and Deeds via transfer of equity. The client’s partner was to take on the mortgage jointly with the client. This would usually be a straightforward process, however the client’s mother was to remain in the property. This makes almost every lender on the market very nervous as it falls outside of their criteria.

The property has two kitchens, which whilst not being favourable with many lenders, it can be possible. Although on further fact finding, I discovered that not only were there two kitchens but also two front doors which essentially means there are two houses on one title.

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The client also has a little recent adverse credit, some historical adverse credit and he was looking to consolidate current debts. They were looking to redeem the original mortgage, which was only taken out 9 months ago, along with the second charge, and some credit card debts and loans. They were paying around £3500 per month on the property finance alone.

We persevered with this one and managed to find one lender on the entire market that was comfortable with the multi-unit aspect, the two front doors and the mother remaining in the property. We managed to save the client almost £1000 per month by consolidating debts and moving the secured loans into one at a better rate.

Things to consider:

  • Almost every lender on the market will not allow someone being transferred away from ownership to still remain in the property post loan. This is because they retain some legal rights to the property.
  • Properties with two kitchens are generally ok with some lenders, but if the kitchen is fully functioning and allows someone to live independently in a different area of the house as a self-contained unit, it becomes essentially a residential multi-unit on one title and it is very difficult to place.
  • Historical adverse is ok dependent on what it is and when it was registered/satisfied.
  • A certain amount of recent adverse is also ok, as long as it is no more than a certain amount within a certain time frame. Adverse that is against secured loans is the most damaging, unsecured is less problematic, and communication and utility adverse is the least likely to affect your ability to get a mortgage.

To know more and speak to one of our Residential Mortgage Expertscall us now on 0333 0166 600. You can also fill in this short online form to get started. Our team of Residential Mortgage Experts will get back to you straight away.

Discover our Mortgage Broker services.