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.
- 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.
- 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
ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
This is just one example of how we have helped secure finance for a client. If you have a similar scenario or something you'd like us to look at please get in contact with us on 0345 345 6788 or contact me directly at gavinr@mortgagesforbusiness.co.uk.
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19th October 2016
