Home Mover Mortgage Offer in Six Days During Lockdown
The Clients: Married homeowners looking to purchase their ideal family home.
The Property: The couple wanted to purchase a four-bedroomed detached home in the North East of England which was better suited to their growing family.
The Finance: The clients needed a 75% LTV mortgage on the property.
The Challenge: The house in question had a lot of interest from other prospective buyers, so our clients were keen to get a mortgage offer as quickly as possible to improve their chance of securing their ideal family home.
They were looking to borrow at a 5x income multiple, which was more challenging to find than usual in the reduced lender market we faced at the beginning of lockdown. Unfortunately, due to the Coronavirus lockdown, one of the applicants had been placed on the Government’s “Job Retention Scheme”, potentially impacting their affordability assessments. Furthermore, the restrictions meant that a physical valuation of the property was no longer possible, meaning we would have to try and find a lender who would complete a desktop valuation for a purchase at 75% LTV. Again, as many lenders had reduced criteria at the beginning of lockdown, this was going to more challenging than usual to solve.
The Solution: The first thing we did was review several lender criteria on both “furloughed” applicants and available income multiples. We then approached a few potentially suitable lenders about their restrictions on desktop valuations and current application processing times. Having sourced an appropriate lender who would be able to complete the remote valuation, the client received their mortgage offer within six working days! Here are the details: