Mortgage for self-employed electrician with CCJ to buy first home

The client is an electrician who was looking for a mortgage to buy a 3-bed terraced house in the Surrey commuter-belt which would be his first home purchase.

He has been self-employed for close to 20 years and been living with his parents which had allowed him to amass a deposit of £114,000. Although fairly straight forward, there were two main challenges with this case.

  1. The client’s credit profile shows a CCJ which had been satisfied (paid) three years ago. The CCJ was for several hundred pounds lodged following a dispute with one of his electrical suppliers. Unfortunately, some lenders won’t accept any CCJ’S satisfied or not, some require CCJs to have been spent for at least six years and/or, be below a certain monetary amount.

  2. In order to purchase the property, the client needed a lender that would use an income multiple of five times income. Most lenders will only offer 4.5 times income to first time buyers.

We approached a high street lender which generally takes a pragmatic view in these cases.

After some negotiation, the lender agreed terms because the loan to value was below 75% and other than the one isolated CCJ, the client’s overall situation constituted a good risk.

Here are the details:

Property value: £350,000

Loan amount: £236,000

LTV: 67%

Rate: 2.35% 7 year fixed

Term: 30 years capital & interest

Lender arrangement fee: £999 added to loan amount

Mortgage payment: £914 pcm

Consultant: Gavin Richardson, 01732 471613


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