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First Time Buyer – Self-employed Partner with No Accounts

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The Client: We were recently successful in helping a client buy their first home, who had recently become a Partner within a GP practice. The Scenario: Typically, when you become […]

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The Client:

We were recently successful in helping a client buy their first home, who had recently become a Partner within a GP practice.

The Scenario:

Typically, when you become a Partner of a GP practice you a treated as “self-employed”. A Partner will take a share in the profits (and losses) of the practice. Compared to a salaried (employed) GP who is employed on a contract, on a basic salary by the practice.

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This can pose an issue when looking to take out a mortgage as typically lenders will need at least 2 years history in that role, being self-employed. To a Lender anything less can be deemed risky. Due to the nature of being self-employed, income will typically fluctuate. As a result, Lenders risk appetite is high as they need to be sure that the business can prove a sustainable track record of earnings by way of 2 years accounts.

Therefore, on the face of it our client wouldn’t be able to get a mortgage having only just joined the practice and not having the standard track record lenders demand.

The Solution:

However, this wasn’t the case for our client. This is where our expertise came into play, being a Specialist Self-Employed Mortgage Broker we were able to source a market leading deal with a well-known High Street Lender.

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All the Lender required instead of the typical 2 years accounts, was a letter from either the head partner OR Practice Accountant detailing the level of projected drawings the client was expected to receive for the year. In addition they also required to see the detailed Practice Accounts to back up the letter.

To make things even better, we were able to obtain a ratio of 5.5 x income and also up to 90% loan to value, which represented an excellent deal for the client who was delighted with this outcome.

Summary:

Being self-employed for less than 2 years doesn’t necessarily mean that you are unable to get a mortgage. Working with a Specialist Mortgage Broker that fully understands the market and what options are available to self-employed persons such as Partners, GPs & Contractors etc; is the best way of not only ensuring you can successfully secure a mortgage, but equally that you can achieve the highest loan to value and income multiples.

To know more and speak to one of our Contractor Mortgage Experts, call us now on 03330 166 600. You can also fill in this short online form to get started. Our team of Contractor Mortgage Experts will get back to you straight away.

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Adverse Credit Remortgage Case Study

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The Client: Our client wanted to remortgage their primary residence, which was currently mortgage-free. They needed to raise money to buy a new vehicle and also to send their daughter […]

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The Client:

Our client wanted to remortgage their primary residence, which was currently mortgage-free. They needed to raise money to buy a new vehicle and also to send their daughter to university.

The Scenario:

The client had already approached several other brokers, all of whom were unable to assist him. The client had recently missed several mortgage and unsecured loan payments in the previous 12 months therefore he had what is referred to “Adverse” (bad) Credit.

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Generally most lenders will outright decline a mortgage application if there have been any missed mortgage payments in the last 12 months. The client could have waited until the payments were more than a year old, but they wanted the money right away.

The Solution:

We started with a well-known High Street Lender because they didn’t have any specific criteria for missed mortgage payments and considered it based on credit score. Unfortunately, the case was rejected due to not meeting the minimum credit score required. The client’s credit report was unaffected because the lender just performed a ‘soft check,’ which leaves no trace.

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The next best option was to contact a Lender that specialises in providing mortgages to clients who had previously experienced credit problems. The Lender approved the mortgage application because the arrears had been paid in whole and the client could show that no payments had been missed in the previous six months. This loan was available with a loan-to-value ratio of up to 85%.

Summary: Adverse credit doesn’t instantly dismiss the ability to being able to get a new mortgage. Specialist Lenders exist in the market for circumstances when this happens and they are willing and keen to work with clients all the time. However, access to these Lenders is invariably restricted to clients introduced firstly via Brokers and secondly, typically only “whole-of-market” Brokers work with the Specialist Lenders such as these.

To find out more and speak to one of our highly experienced and CeMAP qualified Mortgage Advisors, call us now on 03330 166 600. You can also fill in this short online form to get started. Our team of Residential & Buy to Let Mortgage Advisors will get back to you straight away.

Residential Remortgage mortgage deals

Residential Remortgage – “Part and Part” Case Study

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The Client: The client is a married couple that own their own residential home. They were looking to raise some money against the property, plus pay off the mortgage and […]

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The Client:

The client is a married couple that own their own residential home. They were looking to raise some money against the property, plus pay off the mortgage and two further advances currently outstanding. The money raised is to be used for multiple Buy to Let purchases.

The husband was the only source of income, and he had only just started a new job about 6 weeks before the Fact Find was completed. The wife stays at home and looks after the their three children. This is something that needs to be identified as a possible issue, since three dependents with one source of income can severely affect affordability potential with most lenders.

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The Scenario:

The clients wanted an “Interest only Residential Mortgage”. The difficulty with this is you need a certain amount of equity in the property for a full Interest Only Residential Mortgage to be considered, as most lenders need to be able to use the sale of security property as an acceptable repayment strategy. The other difficulties with Interest Only Residential Mortgages is the maximum Loan to Values, plus minimum income requirements, with most lenders needing at least £75,000 for one applicant, or £100,000 joint for two.

The Solution:

A “Part & Part Mortgage” (i.e part “Interest only” and part “Capital Repayment”) fits perfectly in this scenario. There is only one main Lender that can offer this product. The income of £66,000 is acceptable. The three children do not affect affordability. The lender will allow up to 60% on interest only, plus a further 15% on repayment – i.e. 75% Loan to Value (LTV). The lender is also fine with the client having just started a new job, whilst also being in probation. They also have a different way of working out equity required for our desired repayment vehicle.

They have a tool that gives us a figure on the average property value in the area and that amount is the equity that needs to be left at the end of the mortgage term, for downsizing and sale of property to be acceptable. With the full 75% of interest only plus repayment, it does not fit this criteria, but once the repayment aspect is paid off at the end of the term, it has the equity required, this is important to remember.

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Key Points to consider:

  • Interest only “part and part” is certainly achievable on less than £75,000 income.
  • You can be in probation and have started a new job recently.
  • The equity finder is generally more relaxed than a fixed amount that other lenders demand.
  • Child dependents don’t necessarily ruin affordability.

To find out more and speak to one of our highly experienced and CeMAP qualified Mortgage Advisors, call us now on 03330 166 600. You can also fill in this short online form to get started. Our team of Residential & Buy to Let Mortgage Advisors will get back to you straight away.

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First Time Buyer Non-Standard Income Case Study

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The Client The clients were a couple looking to purchase their first home but one client was leaving their job to further their career prospects by taking a research position […]

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The Client

The clients were a couple looking to purchase their first home but one client was leaving their job to further their career prospects by taking a research position to further qualify and increase their earning potential. This would mean that they would no longer have an earned income and they would not be able to afford a property in their area with just the income of the remaining employed client. The client was due to receive a non-taxable stipend to support their studies but had been turned away by banks saying they could not accept the income.

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The Resolution

We managed to secure the clients a mortgage with a High Street Bank on a low, fixed 5 year interest rate. The bank were happy to accept this income and take the rationale in cases of this nature that the clients job prospects and future earnings will improve after completing their studies and will be able to secure a higher future income in a professional field, reducing the risk to the lender.

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The client had thought that they would have to rent for the 3 year duration of their PHD but are now settling in to their new family home. This demonstrates the power and reach of using a whole-of-market broker which has the extensive knowledge and experience to reach out to lenders who are willing to work with clients with non-standard incomes and arrangements.

To know more and speak to one of our Residential Mortgage Experts, call us now on 0333 0166 600. Alternatively you can Request a Callback now via this short form. Our team of Residential Mortgage Experts will get back to you straight away.

HNWIs

Benefits of using a Whole of Market Mortgage Broker – Case Study

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The client came to us after being declined by a mortgage Lender for a property they were looking to purchase. The client was looking for a Buy to Let property […]

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The client came to us after being declined by a mortgage Lender for a property they were looking to purchase. The client was looking for a Buy to Let property purchase. Their previous Mortgage Broker was referred to them by their estate agent. A lot of UK Mortgage Brokers work with either a closed or restricted panel of Lenders and can’t therefore approach every lender in the UK. This means their knowledge in a specialist market would be very limited.

This is where a truly “whole-of-market” Mortgage Broker like ourselves are able to demonstrate their real worth and benefit. Working with ALL UK Lenders including the Specialists, we can help our customers with both the straightforward and also difficult cases as well. Additionally, being a “Directly Authorised” firm, means we can provide tailored and specialist solutions to our clients from the widest selection of UK lenders.

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This client had sadly given up on their hopes of being able to proceed with this specific property purchase and were also planning on giving up on buying in the property market. However, being a Brokerage who always wishes to explore every single opportunity for our clients, we therefore completed a Fact Find with the client in order to fully understand their exact circumstances.

Having completed this exercise we were very confident we could help this client with their mortgage requirements to enable them to proceed with their Buy to Let property purchase. We’re delighted to say that we were successful in being able to arrange a mortgage for this client for their BTL purchase and help them realise their dreams.

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Furthermore, we also helped their son and daughter for their respective Residential mortgages as a result of the excellent service and flexibility the client experienced from us in finding a complex solution to their requirements.

Things to consider:

  • Being Directly Authorised means we can truly provide our customer with a whole suite of solutions for their mortgage needs.
  • Our clients have access to ALL UK Lenders, giving them the confidence that they will most certainly get the most competitive deal in the market.
  • We can help clients with simple, complicated and specialist criteria with ease.
  • If there is a solution for the client, we can find it and help the client with it.

To know more and speak to one of our Buy to Let Mortgage Experts, call 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.

office block

Limited Company Purchase of 5 flats in 1 Block – Case Study

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A client called in initially looking for some advice as she was looking to purchase what she had been advised by the Sellers as a multi-unit block of 5 flats […]

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A client called in initially looking for some advice as she was looking to purchase what she had been advised by the Sellers as a multi-unit block of 5 flats on one Freehold title. This was a Limited company purchase with an element of the deposit coming from a gift by a family member.

We sourced and submitted the application with the best deal over the initial 5-year fixed period.

However, following receipt of the application, the Lender then checked with the Land Registry and notified us that the flats were not in fact all one title, but instead as 5 flats with separate leases. The client was informed of this and she decided she was still wanting to proceed with the purchase the flats, but this would now have to be done with 5 separate mortgage applications.

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Following this, there was then an issue of the freehold, which also was intended to be purchased. This exposure can be a problem for lenders in situations like this, so we had to source the deals, and confirm certain lenders would take however many in the block, without breaking their exposure limits.

We ended up with a solution which encompassed 3 different lenders and advised the client she would have to place the freehold in her own name, whilst the purchases of the leaseholds would go into her company name, as lenders usually want to see the freehold owned in a separate legal entity to the leaseholds.

This was all worked fine, and we managed to submit and complete all 5 property purchases successfully.

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Things to consider:

  • When purchasing a block, it’s important to know how the property is set up. One multi-unit on a freehold title will be one application, whilst if there are separate leases in place, it will be multiple.
  • If owning both a freehold as well as also leaseholds in a building, the freehold would be advantageous to hold in a separate legal entity.
  • Lenders have exposure limits to buildings and also streets and areas, and generally will not lend over a certain percentage of a building.

To know more and speak to one of our Buy to Let Mortgage Experts, call 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.

RICS brokers Buy to let Portfolio Landlord

Portfolio Landlord – 2 Buy to Let Purchases – Case Study

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We first started working with this client back in November 2020 with at the time, their new Buy to Let purchase and also servicing some of their existing property portfolio. […]

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We first started working with this client back in November 2020 with at the time, their new Buy to Let purchase and also servicing some of their existing property portfolio. The client has an existing portfolio of Buy to Let and HMO properties.

Their key requirement when choosing a Mortgage Broker was the necessity in getting a timely service, timely updates and regular contact with a dedicated person throughout the process.  This is exactly the service which Commercial Finance Network specialise in and happens to be one of our unique selling points.

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Last month we helped this client again with two new property purchases. The client called us on a Monday morning and advised us of the 2 properties they were looking to purchase. We then searched the whole-of-market for the best deal available for them.

Following our presentation of their options, we were then able to get a Decision in Principle for the client by Monday afternoon and their purchase offer was accepted by the Vendor, due to the efficiency and speed of our service by Tuesday morning. Due to the speed in which we’re able to act both initially but also commitments to swift conclusions, our client was also able to negotiate discounts off the purchase prices, saving them several thousands of pounds in the process.

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On Tuesday afternoon the applications were then submitted to the Lender. Within 24 hours from the initial point of contact with the client, we were able to submit full applications to the Lender with successful outcomes on both properties.

As well as recommending us to other members of their local property networking groups, this particular Portfolio Landlord now exclusively gives us ALL of their mortgage broker business, based on our efficiency, dedication and service delivery – key factors upon which we mostly certainly pride ourselves. The UK property market can be quick, so we need to be quicker! At ALL times, it is essential that we maintain the highest levels of Customer Service and delivery – this is the main pillar upon which Commercial Finance Network was founded and sets us apart from our competitors.

To know more and speak to one of our Buy to Let Mortgage Experts, call 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 Mortgage – Same Day Mortgage Offer – Case Study

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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 […]

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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 Experts, call 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

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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 […]

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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 Experts, call 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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