Case Study 1 – tackling rising rates
My clients were becoming increasingly concerned with the rate environment following the Bank of England increases seen over the past few months. They were keen to secure a new deal before rates increased further.
Their existing mortgage lender would not give them the opportunity to secure a new rate until they were three months away from their existing deal ending. I was able to locate a lender who offered a six months validity period on their offers, which meant the clients were able to remortgage early and therefore secure rates before any future increases. We have agreed to contact their existing lender when we are three months away from their current rate finishing as it’s prudent to ensure they are not offering more favourable terms than those secured by their lender today.
Case Study 2 – getting a higher mortgage offer
I recently assisted a client with a house purchase.
He ran a trading limited company, but also had a separate holding company which he did not take income from.
I was able to enhance his mortgage lending by £200,000 by incorporating the income received by his holding company.
This enhanced borrowing level meant that he was able to purchase a higher value property which will serve as the family home for many more years.
Case Study 3 – refinance on a Buy-To-Let
My client has an investment property which has a fixed rate ending towards the end of this year. There was a shortfall in rental income which meant he was unable to borrow the amount he needed to refinance.
I was able to locate a lender that was willing to offset the shortfall in rental income against his earned income, which meant he could then raise sufficient funds to refinance.
Most Buy To Let lenders in the market will only determine the mortgage lending by the rent charged (or paid by) the tenants. This lender was able to look at his disposable income to support the shortfall which meant he did not have to use his savings to reduce the amount owed.
Case Study 4 – first time buyer/first time landlord
My client received an inheritance from her late grandmother and wanted to use the funds as a deposit for a buy to let property.
Being a tenant and first-time buyer herself, it was challenging to locate a lender as most companies will only lend to experienced landlords or borrowers that live in a property they own. I was able to locate a lender that would consider a first time buyer/first-time landlord.
Furthermore, there was a rental shortfall which the underwriters were happy to take a view on because the clients earned income was sufficient to cover the shortfall.
Simon Harrison