We were approached by a married couple looking for a mortgage to buy their first home - a three-bed detached house in the North of England.
The wife is a full-time teacher and the husband is self-employed. For the last three years he has been working for a utilities company on a zero hours’ contract.
Many lenders are cautious when it comes to lending to individuals with this type of income because it is difficult to ascertain future earnings.
We took the case to a high street lender that we knew would use the husband’s last 12 months’ invoices to the utilities company to calculate his average annual income. This, combined with the wife’s salary showed that the couple met the lender’s mortgage affordability test and terms were agreed.
The couple chose the following rate:
Property value: £210,000
Loan amount: £178,500
Rate: Bank Rate + 1.69% for 2 years
Term: 25 years capital & interest
Lender arrangement fee: £999
Mortgage payment: £778 pcm
Consultant: Jeni Browne 01732 471647
ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
27th September 2016