Mortgage secured because first-time buyer deposit and income issues resolved
2.44% Interest Rate
Mortgage structured at affordable repayment plus loan protection peace of mind in place
Our client, a first-time buyer, spotted that the flat that she had been especially interested in for some time, had come onto the market. The property was vacant so she could move in whenever she was ready.
What was needed
Our client needed advice around financing the purchase and assistance on a specific issue relating to the deposit to be used. As her offer for the property had already been accepted, she wanted to move things forward quickly.
What was the challenge
The client’s first-time buyer deposit money was the issue as she only had 10% of what was needed, so we had to be innovative in our solution. Most lenders do not usually accept loans as an acceptable form of deposit but based on research, we were able to identify some lenders who could consider the application using a loan as her deposit.
How we provided the solution
Paul Asare, Associate, had started the client’s application earlier before lockdown. Regrettably, the lender who the case was placed with changed their decision in the interim, with restricted lending, which meant that the application was rejected.
Not giving up, Paul re-submitted the case and kept the client informed throughout the process, taking the approach of painting a holistic picture of the client’s finances and personal circumstances.
One other issue was the way in which the lender was treating the client’s income. Since she worked under an umbrella company – most lenders would consider the client as self-employed – this would mean she couldn’t borrow enough for the purchase. However, following various clarifications and deliberations after presenting a whole picture, including providing previous P60s, Paul was finally able to get the mortgage application accepted, to the huge relief of the client.
Financial protection achieved
As part of the mortgage process, Paul ensures his clients’ incomes and lifestyle are protected. In this instance, it was essential, as the client was taking out a separate loan for the deposit as well as arranging a mortgage, with both repayments of the debts solely reliant on her income.
Bringing to life the implications of not being adequately protected was welcomed by the client. She was absolutely thrilled that she’s now secured the mortgage amount she needed at an affordable repayment, in addition to securing the right level of protection in the event of loss of income through serious illness or accident.
What was the rate?
Rate was 2.44%, fixed for 5 years