Our clients recently moved to Scotland and were looking to purchase a residential property. However, they had been rejected by their existing bank and another couple of lenders due to their employment status as contractors within the TV industry. The lenders in question took issue with the gaps between the various contracts.
We secured a deal with a high street bank on a market-leading rate fixed for five years. The bank was comfortable with the applicant’s track record of employment in the TV industry, and the offer was secured within six working days of submission.
Lenders typically want to see a track record of continuous employment contracts to ensure that the income is stable enough to support the mortgage payments. However, in the TV industry, significant gaps between contracts are common, and this can cause issues for an applicant, especially when they approach a bank directly as lenders have different appetites for lending in this sector.
This can often result in an initial decline, leaving the applicant bemused as, on paper, their annual income is more than enough to support the mortgage repayments.
The key to securing this deal was approaching the correct lender and presenting a solid employment track record for the applicants. Both applicants worked in production on various TV programmes, so they consistently had gaps of up to 3 months between contracts.
We provided a track record dating back two years, along with a forecast of contracts for the following six months. The bank was happy to lend based on a 1-year average of earnings sufficient to secure the desired borrowing.
The clients were under pressure to secure a mortgage offer quickly as they had already lost several weeks dealing with their existing bank and additional lenders. We secured the deal quickly, allowing the clients to exchange almost immediately. The clients have the keys to their new home and are delighted with the outcome.
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