The client: An employed department director of an internationally recognized financial services company, with a history of non-mortgage payments leading to mortgage defaults. The client was unable to pay a mortgage due to severe medical circumstances within the 7-year credit history. The client has high income and a good asset position, having owned their current owner-occupied property in London. The client is also receiving an inheritance, which at the time of application was in probate, which would form a large part of the deposit contribution. The client’s preference was not to sell their current owner-occupier home, so was relying on the probate for the new purchase.
The property: The client wanted to purchase a £1,000,000
The finance: The client was due to receive a considerable sum as part of an inheritance that was in probate at the time of application. We needed the chosen lender to consider the following;
Adverse (mortgage defaults, avoiding repossession) within 3-7 years income multiples to be minimum 5xPreferred 2-year variable70% Loan to Value
Progressing mortgage application to mortgage offer, with probate being evidence of depositFlexibility to remortgage when able to meet high street lending criteria
The client also preferred their mortgage to be split with 50% of the value of the property on an interest-only, and the remaining on repayment.
The Application: Due to the complexity of the process of probate and the issues surrounding the clients adverse, it was important that we obtained pre-approval from the underwriters prior to submitting any case, due to the potential effect on the client’s credit file. I was careful with my research and ensured we had detailed information, specifically around timelines for the client’s medical issues, and submitted as part of a ‘pre-approval’ to the underwriters. The case was then approved in principle and the eventual lender provided a detailed list of required due diligence documents. This enabled me to submit fully with most of the documentation prepared in advance to assist to avoid too many delays due to the complexity of the case.
Property value: £1,000,000
Loan amount: £700,000
LTV: 70%
Rate: 3.42% 2-year Variable
Term: 29 Years (in line with retirement of the client)
Lender facility fee: £3,500 added to the loan
Monthly payment: £2,347
Detail correct at the time of sourcing their deal.
