Fast, successful mortgage application despite high proportion of commission income

£470,000 borrowing achieved at 2.79% on £575,000 property

Client ‘over the moon’ at securing the purchase of her home and protection of her future income

Our client

The client was referred to Rose Capital after a highly satisfied colleague secured a mortgage through the efforts of broker Paul Asare. The client was a single applicant with the greater proportion of her income consisting of quarterly commissions, seeking to purchase a flat for £575,000.

What was needed?

The client needed to borrow more than £470,000 to secure the flat she wanted to purchase, whereas her basic income alone (without commission taken into account) and her deposit would only enable her to borrow £250,000.

What was the challenge?

The challenge was to secure the mortgage amount needed as a matter of urgency as the client already had an offer accepted and speed was of the essence (especially in their quest to meet the deadline for the Stamp Duty holiday of 31/03/2021). The Estate Agents were applying pressure and were threatening to reinstate the flat back on the market. The danger was that a lender might not be willing to lend the client her needed funds because most of her income was sourced from commission income.

There was also a possible issue around the new EWS1 form or External Wall Fire Review form which records an assessment of the external wall construction for flats, now often required because of the Grenfell Tower fire cladding tragedy. This may have been an issue if there was no EWS1 to provide to the lender from the builders/management company.

How we provided the solution

Paul Asare, Associate, researched the mortgage market and using his knowledge and contacts secured a lender who would provide all the funds needed for the purchase by using the majority of the client’s quarterly bonus. No mean feat in this current climate where affordability criteria are strict.

Paul also did his due diligence to ensure the type of property (in this case a flat in a 4-storey building) was not going to be an issue in terms of the External Fire Wall Review.

The speed of the whole process also surprised the client, who is now ‘over the moon’ after receiving her mortgage offer in under 2 weeks after the application was submitted.

Alongside the mortgage application, the client also saw the importance of protecting her income in case she was unable to work due to sickness or accident.

The client was delighted that she was able to secure the level of borrowing she needed to purchase the property she desired and so quickly.

What was the rate?