A MORTGAGE FOR LIMITED CREDIT HISTORY CLIENT

THE SCENARIO

Our clients' challenge

Our client was a first time buyer, who needed to find a mortgage broker and had put an offer of on a £750,000 property in London. The case was complex due to the client’s limited time living the United Kingdom, due to her having worked in Belgium for the previous 6 years and only 

recently returning to the United Kingdom. She had a UK passport but very limited credit history here. To add, she was due to start a new role at a cooperate bank but she was not in receipt of his first wage slip yet. 

They were buying a flat in Islington and wanted a local Mortgage adviser.

CLIENT SCENARIO

We were able to source a lender that was able to consider the case based on her signed employment contract and deposit distribution. We provided a copy of the client’s CV to the bank and employment contract, showing her track record in employment and earnings in the various positions he held in Belgium. This gave them comfort with regards to her career progression and job stability and the satisfaction that the probation period should not be considered an issue. 

So, the scenario for this case study was as follows:-

Property value: £750,000
Nature of mortgage: Joint application/ guarantee mortgage
Deposit: £225,000
Mortgage funding: £525,000
LTV: 70%

An LTV ratio of 70% is certainly a possible target only if the underlying income can pass the affordability test. There was also the extra problem of a joint application where one of the applicants will not be on the mortgage. Indeed, due to the mothers’ age, many mortgage lenders would simply refuse.

ISSUES TO ADDRESS

Wealth: Deposit from savings,
Income: Income plus investment income
Mortgage funding: £525,000
Mortgage type: Capital and interest

Help: Mortgage Adviser in Islington
LTV rate: 70%

We managed to arrange an array of fixed mortgage interest rate options which we’ve listed below:

5 year fixed

Interest rate: 1.82%


MORTGAGE ADVISOR NEAR ME: 

There has been an increase in the number of mortgage applications that involved assist from parents who wont to be part of the property deeds but will only come on as a guarantee to cover any shortfall regarding mortgage payments although those over a certain age it can be difficult to find offers. Over the years we have built up some very strong relationships with lenders and private banks who have allowed us to negotiate deals that would not normally be on offer.