Getting a mortgage under very challenging circumstances

The Challenge

Jayne made an enquiry and was put through to Luke and it’s fair to say, her situation was very challenging to say the least. She had found a property her and her partner had fallen in love with, but very recently Jayne had stepped down as the director of a limited company as things weren’t working out with her business partner, and had transitioned to a sole trader. The shareholding of the company had also been changed in the last year, adding some further complexities to an already complex case. In addition, her partner Brian had also had a few minor blips on his credit file causing a CCJ from a parking fine and a mobile phone default.

The Discussion

Whilst on their first phone call Jayne had said that she had been to a few other brokers who said she would need to wait for a full year of trading as a sole trader before anyone would consider her, but Luke felt there might be some options. They had fallen in love with this property and wanted to get out of renting. Whilst he knew it would be a challenge Luke felt this would be a case where if he could position it to the lender in the best light possible, they may take a view.

The Research & Solution

After phoning around a number of lenders who all said they would need 1 full year of trading, undeterred Luke was able to find one lender who said they could consider the case on a referral basis. Luke advised Jayne that there was a lender willing to consider this, she was over the moon that someone would even consider her. Whilst the lender initially had some reservations, along with help from the client’s accountant, Luke was able to present the case to the lender in such a way that the lender was happy to accept this. A few weeks after the application was submitted, Luke phoned Jayne to advise her mortgage offer had been issued and that buying her dream home was just weeks away, once all the legal work had been completed.

Providing an all round service

Jayne and Brian also had an existing life insurance policy, however despite having no major medical issues, the provider they were with had increased their premiums at underwriting. Luke was able to secure more favourable terms with another provider, ensuring that their new mortgage was fully covered, should the worst happen to either of them. They were also able to save just over £25 a month on their premiums.