However, while the pandemic fuelled his desire to move, it also had an impact on his earnings. He works in IT and saw a drop in his regular income. His earnings have since recovered but he was worried that lenders would not view this dip in income favourably when assessing how much he could borrow and may want to lend less than he needed. The client hoped to secure a five-year fixed-rate mortgage to take advantage of the cheap rates available and to achieve some certainty for the medium term.
Numerous lenders were sourced but we needed one who would lend the full £910,000 our client needed for his purchase and who therefore wouldn’t penalise him for his dip in income during the pandemic.
Key requirements: –
- A lender who would lend the full £910,000 required to purchase the new property.
- A lender who would not penalise our client for his dip in income.
- A lender offering a competitive five-year fixed rate and who would agree to add the arrangement fee to the mortgage.
After sourcing the mortgage market, we identified a lender who was offering 1.29 per cent fixed for five years and who would lend the full amount requested.
The application process: To support the mortgage application, the client provided details that his income had returned to its ‘old’ level, via management accounts and bank statements. He also provided evidence of his identity. We were delighted to inform him that a lender had issued a formal mortgage offer for the full amount requested at a very competitive rate.