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
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.