Couple with complex income structure and history of late mortgage payments purchase family home

Couple with complex income structure and history of late mortgage payments purchase family home

07.03.17 | Written by: Beckie Pepperrell

We were approached by a married couple looking to upsize. The husband is self-employed working within a consultancy firm. The wife does not work due to poor health and receives permanent monthly income from health insurance.

The couple wanted to buy a 4-bed detached house in Kent, in close proximately to their children’s school.

They had already approached one of the high street banks but had been declined for the following reasons:

  1. The wife’s income is solely from health insurance
  2. The couple had been late with mortgage payments on numerous occasions within the past six months

The couple informed us that the missed mortgage payments had been due to an admin error which had resulted in the bank transfers being made into the wrong account.

We took the case to an intermediary only lender with whom we have a strong relationship. This particular lender does not credit score, instead it looks at the applicants’ overall credit profile. We spoke with the business manager, explained the scenario and provided him with bank statements to support the clients’ reason for late payments.

Happy with this explanation the business manager spoke to the underwriters to clarify the situation and the following terms were offered:

Property value: £480,000

Loan amount: £336,000

LTV: 70%

Rate: 1.49% 2 year fixed

Term: 23 years capital and interest

Lender arrangement fee: £999

Mortgage payment: £1,443 pcm

Consultant: Beckie Pepperrell, 01732 471 602

ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.