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.

Any rates mentioned were relevant at the time the application was submitted and are not reflective of the current market.

Mortgages, Existing Clients - Valid from January 2024

Customer Scenario

The applicant had been residing at home with his parents whose interest-only mortgage was coming to the end of its term. Our client wanted to purchase the family home from his parents, at under-market value, allowing him to reduce the stamp duty liability and allowing him to utilise the gifted equity in the property to essentially form his deposit. This meant requiring borrowing of 100% of the discounted purchase price and the plan would be for the parents to continue to reside in the property post-completion.

Current Situation

Although several lenders can consider this arrangement, the vast majority of lenders would require the parents/existing owners to move out of the property on completion, therefore, we required a lender that would allow them to remain, while being able to proceed based on the discounted purchase price. The property was also initially declined as the valuer deemed there to be 8 bedrooms, with concerns regarding the potential for the property to be used as a HMO in the future.

The Solution

We were able to source a lender that could lend 100% of the discounted purchase price, understanding that the remaining equity in the property is being gifted and provides them with suitable security. They were also comfortable with the parents remaining in the property, on the basis that they sign a standard occupiers consent form confirming their understanding of the lender's rights over the property. We also successfully overturned the valuation decision, explaining that the property is a long-term family home, has never been let previously and will continue to be their family home moving forward. This allowed the client and his family to remain in their home and having secured the mortgage on a repayment basis, will now allow the mortgage to be repaid in full over the remaining mortgage term.

Self-Employed, Creatives, Mortgages - Valid from January 2024

Customer Scenario

Our client was looking to remortgage their home and raise funds for both home improvements and to consolidate unsecured debts. One client had previously operated as a Director of a Limited Company for several years, however, this company was closed and he opened a new Limited Company approximately 1 year ago, now only having 1 set of accounts under the new company structure

Current Situation

Having used a different broker, who had approached HSBC, the original application was declined as they were unhappy with the recent change in the Limited Company setup.

The Solution

We approached a lender that could take a view on the change in company structure based on the client's experience and having obtained a good projection of the coming year's income from the client's accountant, we were able to have this approved, achieving the full level of borrowing required to facilitate the home improvements and debt consolidation. We were also able to turn this around from application to completion in 1 month which was appreciated given the time that had been wasted on prior applications elsewhere.

Self-Employed, Creatives, Mortgages - Valid from January 2024

Customer Scenario

A client looking to purchase their dream home whilst retaining their existing property on a 'Consent to Let' basis as the current mortgage is fixed until the following year. The client is self-employed and the income in the previous year was primarily US income. The latest year was primarily earned in the UK. The property in question is a newly refurbished house. Our client has a 15% deposit available.

Current Situation

Porting the mortgage from the existing lender was not an option due to the complex income structure. Most lenders require 2 years of consistent UK income and restrict the loan-to-value to 80% due to the 'Consent to Let' and newly refurbished property.

The Solution

We sourced a lender that could ignore the property in the background with an ARLA letter. Before submitting this application, we discussed this detail with our representative and managed to pre-underwrite the case to ensure a smooth application. The case was accepted on a manual underwriting basis with a 15% deposit and the case was offered in 2 weeks.

SPV Landlord, Green Mortgages - Valid from July 2023

Customer Scenario

Two clients were looking to remortgage their existing Rental property owned via a Special Purpose Vehicle (SPV). This is a Limited Company for rental property that they are the sole Directors of.

Current Situation

Their existing lender did not offer new rates and thus we had to look at alternative lenders to remortgage and avoid our clients paying at the higher standard variable rate. Most of their other properties were also rented to students and thus the rental income received is higher than the market value (usually based on a family home rental). Many lenders have also tightened their rental stress tests for borrowing, which made it difficult to find a lender who could offer the correct loan amount with a generous stress test.

The Solution

We sourced a lender that was able to consider our clients and also ignore the background portfolio as long as the rental income covered the mortgage payments. As the property was rated EPC C, we were able to source a slightly better 'green' rate, which in turn eased the rental stress test and we were able to make this mortgage application fit the client's purposes. This saved our clients from being stuck with the same lender and helped them avoid paying the higher rate.

Portfolio Landlord, Green Mortgages - Valid from July 2023

Customer Scenario

A portfolio landlord with over 200 properties in personal names and income from rental profits only. The existing lender is no longer trading and thus was not able to offer a new rate or further borrowing. Our client needed to remortgage to a new lender and raise cash to carry out works on the property portfolio to upgrade properties to an EPC C rating, in line with targets set by the Government.

Current Situation

We needed a lender that can accept portfolio landlords; also one with a generous or no stress test on his background portfolios. Finally, one that will consider rental profits as the only form of earned income.

The Solution

We sourced a high-street lender that accepted our client's application. The lender also offered a better 'green' rate with a small cashback of £250, as the subject property was rated EPC C. This application allowed us to open up further lending with the same lender and the client was able to remortgage further properties which had mortgages on higher rates.

Self Employed, Purchase, First Time Buyer - Valid from June 2023

Customer Scenario

Self-employed clients wanting to buy their first home. Applicant one has income from work as a sole trader, as well as additional income from a partnership. Applicant 2 had previously worked on a sole trader basis but had recently started a Limited Company without the first year's company accounts available yet.

Current Situation

Clients had a 10% deposit and we required a lender who would be comfortable utilising all income streams for affordability, as well as being comfortable with applicant 2's recent move to a Limited Company.

The Solution

We sourced a lender that was able to consider all of Applicant 1's income on the basis that we had two years of evidence of both income streams. They were also comfortable assessing Applicant 2's income based on their prior two years trading as a sole trader, essentially ignoring the move to a Limited Company on the basis that her everyday trading had not changed. The application was approved subject to valuation within 1 working day and the lender proceeded to issue the mortgage offer within 4 weeks of the application being approved, which included the clients having to obtain a specialist independent survey due to the location of the property.

Self Employed, Remortgage, Existing Clients - Valid from June 2023

Customer Scenario

A self-employed applicant operating both a Limited Company, as well as trading as a sole trader and there was also a small credit issue within their credit report which was negatively impacting their credit score. They were looking to remortgage their home to secure a new competitive rate while extending the mortgage term beyond age 70.

Current Situation

We needed a lender who would consider all of the applicants' earned income for affordability purposes, even when extending the term beyond age 70. Also, a lender that could process the application quickly, as they had already moved onto their existing lenders' high variable rate.

The Solution

We sourced a lender that could take into consideration both income streams, ensuring that we could achieve the full level of borrowing required and allow the client to secure a great new deal. They were to extend the mortgage term to age 74 to ensure payments remain comfortably affordable in a higher interest rate environment and were able to overlook the credit blip on the basis that this was an error on the credit provider's side. We were able to complete the full remortgage in just under 3 weeks from the application being submitted, minimising any unnecessarily high costs associated with the prior mortgage.

Mortgage Insurance, Income, Family - Valid from June 2023

Customer Scenario

Previously declined insurance / complex medical history.

Current Situation

A client aged 35, a non-smoker took out insurance policies through a tied broker a year ago. The client recently received letters from the insurer advising that the cover has been declined due to complicated medical history. As a tied broker, they can only work with one insurer as opposed to a range of insurers, so the broker was unable to place cover elsewhere. The client was therefore referred to us.

The Solution

As we are the whole of the market, we were able to approach many insurers to run through their medical conditions to see who can offer the most favourable terms.

The client was keen to have cover in place so we looked at all areas of cover and were able to negotiate terms for life cover of £272,000 with a reasonable rating applied of 50% and income protection with a monthly benefit of £2,000 (deferred period of 3 months) with exclusion due to medical history as opposed to no cover in place.

Customer Scenario

Underpinning - Renovation works - Unoccupied - High buildings sum assured.

Current Situation

We were assisting our client with their mortgage, and the home they wished to purchase required renovating and had previously suffered from subsidence. Subsequently, the property had been underpinned in the late 90s, with further structural works carried out in the last 8 years due to further subsidence. The mortgage lender we sourced for the client also required the building to be insured for its full market value to proceed to the offer stage which was £1.6 million

The Solution

Most high street insurers won't cover a property that is undergoing renovation and has been underpinned with a building sum assured above £1 million. So we headed down the specialist provider route to ensure full coverage for our client.

We were able to source a full renovation works policy on an unoccupied basis, with full peril cover and an increased excess for subsidence of £2,500 for the duration of the works.

The renovation works have since been completed and we have remained with the same insurer, added in contents cover and have reverted to a standard excess of £1,000 for subsidence due to supplying a structural adequacy certificate.

Mortgage Insurance, Insurance, Buildings - Valid from June 2023

Customer Scenario

We were assisting our clients with their mortgage for their next purchase, and as they were moving from a maisonette, they required both buildings and contents insurance as well as the need to individually specify some high-value items.

The Solution

As a whole of market brokerage, we sourced a suitable high street provider offering appropriate cover for both their buildings and standard contents.

This policy allowed us to individually specify high-value items totalling £17,000 allowing them to be insured both inside and outside of the home, thus tailoring the policy to suit the needs of our clients.

This high street provider also offered home emergency and home legal expenses as standard and allowed us to keep the payable excess at a low level.

First-time buyer - Valid from December 2022

Customer Scenario

First-time buyers, one client has two job's both of which started within the last 4 months and the second client is employed earning basic income plus two streams of overtime income.

They were also funding part of the deposit via a non-repayable family gift.

Current Situation

In order to achieve the level of borrowing required, 100% of the income of both client 1's income streams needed to be taken into consideration. We also needed a lender to consider a portion of client 2's overtime income for affordability purposes.

The Solution

While the majority of lenders would require a longer history of working in 2 employment positions, we were able to source a competitive lender that was able to consider both employment positions and utilise 100% of the income for affordability purposes.

The lender was also able to consider client 2's overtime income based on a 3-month average, ensuring that we were able to achieve the full level of borrowing required to facilitate the purchase.

This lender was also comfortable with the source of the deposit and we were able to provide an acceptable template for the letter that was required to evidence the gifted deposit funds. .

Customer Scenario

Self Employed Entertainment with high income in recent years looking for the best new mortgage rate for them in conjunction with applying their own ethical beliefs to their finances.

Current Situation

The client had a good level of earnings and equity in their property, so it became apparent we would have the choice of lenders. The current lender was Coventry Building Society.

The Solution

We obtained a new interest rate for the client. Sometimes, doing not a lot is the best option! Coventry BS rates were ever so slightly more than alternative banks but they ranked highly and offered a convenient product switch.

Not only that, we conducted research using Ethical Consumer Magazine’s ratings of lenders. This showed in their latest table, Coventry BS securing 7th place overall with a Positive Company Ethos.

As we do prefer dealing with customer-focused Building Societies such as Coventry BS, we were still able to obtain this client an extremely competitive rate. The client was overjoyed that they were already with an ethical provider, even though they did not realise it at the time. We had highlighted it during the purchase process but these details do sometimes get lost in the fog of home moves!

All in all, a great solution for those involved.

Self Employed, Purchase, First Time Buyer - Valid from April 2022

Customer Scenario

A single self-employed client wanting to buy their first home. Their income is made up of PAYE fixed term contracting.

Current Situation

A 10% deposit was available and a lender who assesses contracted income is needed for affordability. Their latest contract started in February 2022.

The Solution

The lender we sourced reviewed the client’s payslips and contract and proceeded to issue the mortgage offer within 4 weeks of the application being submitted, including a physical valuation taking place.

Self Employed, Remortgage, Existing Clients - Valid from April 2022

Customer Scenario

A self employed Limited Company director, looking to remortgage on their residential property and raise funds for home improvement works.

Current Situation

The Limited Companies profits showed reductions for 3 years in row, mostly due to COVID and the resulting hangover post COVID, among business expenses that had been incurred. We needed a lender that could use company profits before tax within their affordability assessment.

The Solution

We sourced a lender that could assess profit before tax and salary with maxed out affordability to ensure that the level of borrowing was achievable. The lender required confirmation of income from the accountant and following this being provided, along with builders quotes confirming the home improvement figures, the case went to offer on full requested loan amount.

Contractor, Creatives, Purchase, Self Employed - Valid from April 2022

Customer Scenario

A sole trader/contractor working in the Film and TV industry as a makeup artist, looking to purchase their first home utilising the Government Help to Buy scheme.

Current Situation

Client has been working in their role for 4 years as a fixed term contractor, we needed to find a lender that would assess their income based on the current contract.

The Solution

The lender we used could assess the income based on the most recent contract. The application was agreed and a mortgage offer secured in just under 4 weeks.

Self Employed, First Time Buyer, Creatives - Valid from April 2022

Customer Scenario

A joint application for a couple looking to buy their first home. Both clients are self-employed with multiple income sources.

Current Situation

Due to the applicants unusual income stream, a mix of social media, public speaking, book royalties as well as owning their own content related retail outlet, we needed a lender that would understand their income structure.

The Solution

We provided the lender applied to with 2 years accounts, tax returns and a note confirming a full breakdown of their income streams to ensure the underwriter could clearly see the different sources. The mortgage offer was issued on the full requested loan amount in just over 4 weeks from full application, as the underwriter had an established understanding of the clients circumstances.

Purchase, Employed, Non UK resident - Valid from April 2022

Customer Scenario

The client is a currently residing in Macau and wanted to purchase a UK property for their daughter to live in.

Current Situation

Our client has been living and working in Macau for over 10 years for a reputable international company. They were looking to purchase a London property for their Daughter to live in while she studied in the UK for the next 5 years. The income was in Macau Pataca and due to their residency in Macau, they would be seen as high risk to many UK lenders.

The Solution

We sourced a private bank that was able to consider this overseas lending scenario so long as the client could provide a 35% deposit. The client was a UK passport holder so the bank could see sense in the deal. The bank agreed to lend the full loan for this property purchase and the mortgage offer was issued in a timely manner.

Buy-to-Let Purchase, Self-Employed, Limited Company - Valid from April 2022

Customer Scenario

Two self-employed limited company directors looking to purchase investment properties within a limited company, to better use some built up profits in the business.

Current Situation

Our clients have been operating a limited company for over 20 years and have a substantial amount of profit retained in the company over that period. The director only drew the money they needed which was efficient for tax purposes. They wanted to purchase some investment properties without drawing money out of their business, as this would attract a tax liability on those funds.

The Solution

We worked with their accountant who was keen to set-up a "linked" Special Purpose Vehicle (SPV) company to purchase properties. The clients were able to transfer funds from the trading business to the new company in order for that to purchase properties, without paying tax on the funds that were moved over. We found a lender that was happy to lend to the brand new limited company and allowed the funds to have been transferred between businesses. The lender also provided a "Pre Approved Lending Limit" to the clients, so the bank had already set aside funds and underwritten the application before the clients found a property. This meant the applications were already approved, "subject to valuation" for the numerous properties they intended to buy. It was the ideal position to be placing an offer on a property and is very attractive to any seller.

Self Employed, Purchase, First Time Buyer - Valid as of June 2021

Customer Scenario

A single self-employed client wanting to purchase their first home, however, income in the latest year has been impacted by Covid.

Current Situation

Client has a healthy deposit, however, their latest years income has reduced due to the impact of Covid on their industry. Their previous years earnings were high but the income from 2 years ago was very low.

In order to borrow the required amount to facilitate the purchase the previous years income needs to be taken into consideration.

The Solution

With some lenders now taking a more bespoke view on self-employed applicants that have been impacted by Covid, we were able to source a lender that was able to consider the clients previous years income.

Ordinarily some lenders would then average the years income with the income from 2 years ago, which would not have been sufficient, however, we sourced a lender that would utilise the previous years income in isolation when assessing affordability. This was made possible by strong recent earnings and clear evidence via business bank statements that income was back up at pre-covid levels which the underwriter was satisfied with.

This bespoke approach did mean taking a slightly higher interest rate, however, enabled the applicant to borrow over £60,000 more than with any other lender and did mean that they were able to secure the home they had their heart set on.

Self Employed, Remortgage, Existing Clients - Valid as of June 2021

Customer Scenario

Self Employed Company Director/Business owner looking for a mortgage after being affected by COVID.

Current Situation

The client was looking to remortgage their home and find a new deal after lockdown. Business levels had picked up again after lockdown; however it was clear that the total business income and profit for the year was not going to be the same as previous years, as the business hadn't been operating for a period of 6 months.

The Solution

Although the company accounts for the business showed a drop in turnover and associated business profits, the customer had continued to draw the same income in salary and dividends from the business, as there was a reasonable amount of retained/built up profit held within the company.

Even though business levels were not the same over that year, the client had still drawn the same income that year for tax purposes and tax returns confirmed this. We found a lender that was able to assess the income based on just the tax returns, along with evidence of 3 months bank statements showing income that had returned to levels pre-COVID. The bank was satisfied that the business has successfully been able to resume operations and can see that income is consistent and sustainable moving forward.

Contractor, Creatives, Purchase, Self Employed - Valid as of June 2021

Customer Scenario

A self-employed contracting married couple working in the TV/Film industry was looking to purchase a new home but hadn't been working due to a combination of COVID and maternity leave.

Current Situation

The customers had been turned away by other advisers as they were unable to work during the COVID period and therefore didn't have 12 months continuous contracting records. Pre-COVID, the customer had history in the industry for over 5 years, so were well established. They were ready to buy, with a 20% deposit, whilst also both having returned to work that month.

The Solution

Several lenders were still working from Pre-COVID policy and hadn't adjusted their lending criteria to account for the pandemic, so we needed to carry out a thorough search of bespoke specialist lenders.

We found a lender that would usually require 12 months prior contractor history but we had negotiated that the clients' track history in the industry and the established network would ensure the sustainability of earnings into the future. We were able to justify the affordability of the mortgage based on the new current contracts, previous contracts from before COVID, CV's and previous accounting information to build a case for the customers.

The lender was satisfied that the clients' history of earnings over an extended period of time could easily be replicated after the pandemic and that the maternity break would have prevented them from earning. The bank offered a mortgage of £290,000 on a 2.92% 5 year fixed rate and the customers have bought a new home for their growing family!

First Time Buyer, Mortgages - Valid as of June 2021

Customer Scenario

A young couple in their twenties were looking to buy a new home as they just had a young baby and wanted to move out of their parents.

Current Situation

The customers had a 10% deposit and needed to secure the largest loan possible to obtain a property in the area close to their parents. Both customers were doing as much as possible to boost their earnings and provide for the family. Mr was earning a lot of overtime at work and trying to maximise his additional monthly commissions, while Mrs was working in a school and had taken on an extra role as an administrative assistant at the weekend. Ultimately they needed a large loan which would be in excess of 5x their total annual income. The customers had been turned away by other advisers, as they had been told the maximum borrowing with a 10% deposit would be 4.49x their annual income, and wouldn't include the commission or the additional weekend work.

The Solution

The customers could demonstrate they had been earning in this format for an extended period of time. Mr had evidence of commissions and overtime extending back over 3 years and Mrs had been earning from both jobs for over 2 years also.

Although typically speaking, most lenders are only offering 4.49x your total annual earnings, some can lend more. However, with a smaller deposit, this can be difficult. Also using variable earnings like commission and overtime is normally capped at 50% of that income, to allow for fluctuations.

As first time buyers, a lender was offering a new scheme to support those with a smaller deposit. We were able to secure a loan up to 5.5x their combined incomes. The bank was happy to use 100% of commission and overtime, subject to the lowest of the last 3 months. They were also happy to use the 2nd job as sustainable income, as that had been established for over 12 months.

The bank agreed to lend £330,000 with earnings of £62,800 - this was 5.25x income at 90% LTV (10% Deposit). We secured a very reasonable 2.44% 5 year fixed rate.

Self Employed, First Time Buyer, Creatives - Valid as of June 2021

Customer Scenario

A single self-employed client wanting to purchase their first home, however, income in the latest year has been impacted by Covid.

Current Situation

Client has a healthy deposit, however, their latest years income has reduced due to the impact of Covid on their industry. Their previous years earnings were high but the income from 2 years ago was very low.

In order to borrow the required amount to facilitate the purchase the previous years income needs to be taken into consideration.

The Solution

With some lenders now taking a more bespoke view on self-employed applicants that have been impacted by Covid, we were able to source a lender that was able to consider the clients previous years income.

Ordinarily, some lenders would then average the years income with the income from 2 years ago, which would not have been sufficient, however, we sourced a lender that would utilise the previous years income in isolation when assessing affordability. This was made possible by strong recent earnings and clear evidence via business bank statements that income was back up at pre-covid levels which the underwriter was satisfied with.

This bespoke approach did mean taking a slightly higher interest rate, however, enabled the applicant to borrow over £60,000 more than with any other lender and did mean that they were able to secure the home they had their heart set on.

Purchase, Self Employed, Holistic Planning - Valid as of June 2021

Customer Scenario

Our buyer is a HNW UK citizen currently living and working in the Pharmaceutical industry in Los Angeles.

He owns a residential property in Los Angeles and a further residential property here in the UK.

With his parents needing a suitable place to live, he wished to purchase a further residential property for them to reside here in the UK. The property he wished to purchase was at a value of £680,000 of which he wanted on a purely interest-only basis.

The Solution

Most High Street lenders will not lend to a borrower overseas or one who is not paid in sterling. So our pool of choice was limited without heading down a specialist lending route where rates are far less favourable.

We then approached a High Street lender with whom he shared an existing banking relationship with, we were able to secure an interest-only product and allow him to purchase essentially a 3rd residential property for his parents on full interest-only using his investments and savings as a repayment strategy for the full amount

Outcome

Achieved : 75% at a very acceptable 1.43% on Interest only 3 year fixed rate.

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