There are few who would disagree that the stricter affordability rules introduced under the Mortgage Market Review have benefitted the market, preventing borrowers from overstretching themselves and getting into financial difficulty.
However, strict rules will by their very nature pose problems for people who don’t fit the formula of what affordability looks like.
One such deal came across our desks recently. A British couple had moved to Dubai some years ago to work on contract as teachers.
Quite sensibly, given their contracts expire in June 2017, they were considering a return home and wanted to purchase their first property in Oxfordshire.
The problem? They technically have no income in the UK, no job from June 2017 and no way of proving their affordability.
Add to that the fact their deposit was gifted and that they currently reside outside of the UK, most lenders simply said no.
Vantage Finance on the other hand approached a specialist lender which was prepared to take the couple’s existing income in Dubai as indicative of their earning potential once they returned to the UK.
Lucy Hodge, managing director of Vantage Finance, said: ‘Arranging mortgages for borrowers earning in a foreign currency or who are bringing money into the UK from abroad incurs all sorts of challenges. But these are not insurmountable.
‘Most situations are resolvable but it’s in circumstances like this when knowledge and expertise in the specialist sectors are invaluable. Deals like this are doable, but not if you’re simply relying on a sourcing system. The computer might say no where we can say yes.’
Loan amount: £252,000
Rate: 3.59% interest-only fixed for two years