CASE STUDIES
My Hero

In this section we are providing you of real life example scenarios where we have been able to assist our clients.

The names and some numbers have been changed where necessary for data protection purposes but the picture of the scenario remains true as a whole. You do need to consider that there may be other mitigating factors that have supported the client’s situations.

Secured Loans

Customer Scenario

In addition to their monthly mortgage payment, Mr & Mrs Brown were paying £2,087 a month to maintain unsecured debt of £50,000.

Current Situation

Mr & Mrs Brown had struggled to secure finance on the high street due to their growing debts. The couple had three credit cards with balances totalling £15,000 and two bank loans of £19,000 and £16,000. Mr & Mrs Brown had struggled to secure finance on the high street due to their growing debts. The couple had three credit cards with balances totalling £15,000 and two bank loans of £19,000 and £16,000. Their monthly outgoings were £705 per month for the credit cards, and £815 and £573 for the loans. The payment towards their credit cards covered only the minimum amount. The loans had 32 and 29 months outstanding.

The Solution

We researched all possibilities of debt consolidation – repaying the unsecured debt through budgeting, obtain a further loan and also remortgaging. However the most cost effective route was a second charge loan for the full £50,000. 

In just 21 days Mr & Mrs Brown were accepted for an 80% LTV Bank of England Base Rate tracker second charge loan, repayable over six years.

The monthly repayments on their £50,000 debt, which had been unsecured, reduced to a variable monthly payment of £958 per month.

Whilst the monthly payments were payable over a longer term the couple were better able to manage their monthly outgoings and further down the line they may be able to remortgage.  

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP PAYMENTS ON YOUR MORTGAGE.

Remortgage, Purchase, Mortgages

Customer Scenario

Family wishing to purchase a sizeable Holiday Home in Devon wanting this on the most cost effective basis as possible as a second residential mortgage.

Current Situation

As there are to be 2 mortgages, the preference was interest-only as a repayment method to keep costs to a minimum. Both parents employed with good incomes opening up a large section of the market but for the scenario. Tied in with their lender on the current residential mortgage.

The Solution

The holiday home / second mortgage will be considered more risky by lenders. The deposit available was 20% - whereas most lenders want a 25% deposit minimum for a second home and then also insist on 50% deposit when applying for an interest-only loan.

We could not re-mortgage the main residence competitively as the existing deal was tied in. This meant the clients were struggling to utilise the £500,000 of equity they had in their home.

We therefore advised that even though the existing mortgage was ‘tied in’ with a penalty of 3%, the mortgage conditions stated the deal could be ‘ported’ to another property – this now became the new mortgage on the Holiday Home.

We then performed a simultaneous re-mortgage on the main home, releasing equity at the same time to raise the deposit from 20% to 50% meaning both could be placed on Interest-Only basis whilst accessing market leading rates.

The family were delighted when we advised their income was sufficient to service two residential mortgages at such competitive rates.

This type of creative thinking is where our experience is vital and we will always look to act in your best interests. Contact Us if you feel your situation requires our individualised service.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP PAYMENTS ON YOUR MORTGAGE.

Purchase, Mortgages

Customer Scenario

Ex-Pats returning to the UK looking to purchase a new home for £1,500,000. Working for a multi-national firm wanting to purchase a 5 bed detached house in the Home Counties.

Current Situation

Clients still own a home in Continental Europe that they are looking to sell, however not simultaneously.

They had 25% deposit coming from savings but the rest of their money was tied up in the family home. The home in Europe was also mortgaged; this would need to be factored in for affordability purposes and stress tested in line with UK mortgage regulation.

Both clients had been living in Europe for over 15 years and therefore had a very limited UK credit history (credit files generally only goes back 6 years).

The Solution

As one of the clients was an Ex-Patriate, we found a lender to assist with the relocation based on the fact that the client was still a UK passport holder – this is quite unique and most lenders would not facilitate this type of transaction. As the client worked for a multi-national company, we were able to base their lending on the full future contract the client had signed.  

We obtained a £1.1 million loan on a property worth £1,500,000 fixed at 1.79% over 2 years.  One very happy client!

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP PAYMENTS ON YOUR MORTGAGE.

Remortgage, Self-Employed, Mortgages

Customer Scenario

Self-Employed applicant with 2 limited company entities – not actually drawing all profits and income from the company. Wanting to Re-mortgage and raise £30,000 to repay equity that was gifted from parents to originally purchase the property.

Current Situation

The client has 2 limited company entities – 1 for a restaurant and another for a related consultancy business. Most lenders will only want to use one of these sources or only 50% of the second company. For tax efficiency, the client had only drawn the income that was needed from the companies rather than drawing all profits.

The previous years’ consultancy business accounts had shown a loss – the client relocated meaning turnover reduced dramatically for that year, we would need to get a lender comfortable with this level of risk.

The most recent year’s income was much higher than the last – most lenders take a 2 year average of income when assessing self-employed applicants but we needed to utilise this latest year in isolation.

The Solution

We often find that Building Societies can consider unusual situations so this was our main focus. We sourced a lender with specialised criteria for self-employed applicants, able to look at retained profits for limited company directors as standard.

They also look at the latest year’s income as standard which maximised the clients’ borrowing potential and meant we could apply for the full loan amount. In addition, they were comfortable with the 2 limited companies and utilised 100% of both incomes for affordability purposes.

Our experience in dealing with lenders and having key account status gave us confidence that they could accept the additional risk that one of the companies made a loss in the previous year. We liaised with the client, the lender and the accountant to ensure information surrounding the loss due to relocating was accurately communicated.  

We obtained a £420,000 loan on a property worth £745,000 and a competitive 1.99% 3 year fixed rate on a Repayment basis.

Contact Us if you feel your situation requires our individual underwriting such as this.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP PAYMENTS ON YOUR MORTGAGE.

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