We were approached by two new clients who were having trouble securing a residential mortgage. One of the applicants had some historical adverse on his credit file that had been incorrectly registered.
However, this was still causing significant problems as it had negatively affected his credit score leading to both applicants getting declined by a couple of high street lenders. They approached us to see if we could help.
We secured a residential mortgage with a specialist lender fixed for two years. We were able to negotiate a policy exception to ensure that the offer was issued quickly, as the applicants had already experienced delays when they initially applied for a mortgage directly.
The applicants were “up against it” in terms of timescales. They had grown increasingly frustrated and disillusioned with their previous efforts to secure a mortgage on the high street. Their vendor was getting impatient to the point of considering putting the property back on the market.
Additionally, the property itself ticked all the boxes for the clients – it was their dream home in every sense! The property had an annex that they planned to offer to their elderly relatives who would be able to assist with childcare moving forward thus saving the clients thousands of pounds per month.
The prospect of losing the property was unfathomable so we had to source a solution in a timely manner. The biggest issue was the adverse registered on the credit file which had resulted in “an account in default” appearing on the file.
The applicant had been told verbally by the lender who had registered the default that it had been done in error. The lender promised to rectify the mistake but this would take up to 10 weeks and the applicants simply couldn’t wait that long.
We were able to source an option with an adverse lender with whom he had a strong relationship. We advised the clients that even though they would pay a premium rate on the facility (roughly 1.50% more expensive than the high street), they could increase the term for the initial two years to bring the payments down to a more manageable level.
The lender in question was also happy with the annex & relatives living in the property and was able to overlook the incorrectly registered default. They were happy to offer the clients a mortgage on receipt of the standard income documentation.
We secured the deal just in time and the vendor was happy to continue with the transaction. At the time of writing, the legal work is almost done and the clients are set to complete.
They are delighted with the outcome and extremely excited to move into their new home.
We look forward to refinancing onto the high street in a couple of years.
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