Brokers know that no two clients are the same, no two sets of circumstances are the same and therefore no two deals they need to put together will be the same. Some are more complicated than others however, and when that is the case it can pay to use a specialist adviser with experience of packaging complex cases.
A couple approached us who lived in a £1,000,000 property with a mortgage of just £335,000 that they had purchased in October 2015. Mr is self-employed and despite earning £65,000 a year as an advertising director, the number of lenders who would consider the case was restricted due to the loan to income ratio and loan size for a second charge.
His wife worked part-time doing admin for him, earning £8,000. The pair wanted to raise additional funding on top of their existing mortgage to do some heavy refurbishment works including an extension and had successfully agreed planning permission.
They needed to borrow an additional £275,000 to fund it. Their home was valued at £1 million making the new loan-to-value 61%.
The case was complicated by the fact that Mrs worked for Mr company therefore we needed additional confirmation through their accountant around the income Mrs received.
Vantage Finance began conversations with the lender they considered the best fit but discovered that the loan amount was just in excess of the criteria usually accepted for second charge and also given the borrowers’ income situation.
Lucy Hodge, director at Vantage, said: ‘Often lenders will turn cases away if they don’t meet criteria. It’s for exactly this reason that relationships matter – particularly in the case of specialist lenders.
‘This isn’t about getting the deal done at any price, it’s about finding an affordable and appropriate product for the client even when it looks as though they have no options.
‘Understanding lender appetite in depth and having built trust with them means options can open up which is a positive outcome for everyone concerned.’
The deal completed in June with the lender that Vantage had originally identified following detailed conversations to establish confidence in the deal.
Loan amount: £275,000.00
Rate: 7.14% Variable
Overall LTV: 61%