Mortgage Case Studies
Below are some of the mortgage case studies which show how we have assisted our clients with complex and special situations in getting their mortgage and buying their dream home.
Mortgage with Multiple Defaults
The Situation
The client needed a buy to let mortgage to buy an investment property. Before coming to us, they had had their mortgage application declined due to 3 defaults on their credit file. These defaults were still active and not paid. Their property deal was on the brink of a collapse. The seller was threatening to pull out of the sale due to long delays.
The complexity of the Case
Most lenders require clean credit history. Those which accept minor hiccups will require the applicant to have satisfied and settled any past missed payments, defaults and CCJs.
Course of Action
After the initial case assessment and the fact-find meeting, we did thorough research to find a lender which will not only accept their application but also be quick in processing the case. After initial enquiries with multiple lenders, one was selected and the application was submitted. To prevent the loss of the valuation fee, the lender was requested to hold the valuation visit only after a full assessment of the case.
Results
The application was assessed by the lender in 2 days and a valuation was booked. Their mortgage was approved and an offer was issued within 2 weeks. The client has now completed the purchase and got the keys to the property.
If you are in a similar situation, feel free to contact us to discuss your case. We can help in getting a mortgage with poor credit history, missed payments, defaults, CCJ, IVA or Debt Management Plan.
Mortgage for EU Citizen on Pre-settled Status
The Situation
The clients were a couple both EU citizens on pre-settled status and first time buyers. They had a 10% deposit. The husband was also on zero hours contract and the wife a housewife without any income. Their offer on a property had been accepted but couldn’t find a lender which could lend the required amount of loan.
Actions Taken
Most lenders require a 25% deposit for unsettled applicants. After thorough research and initial enquiries with multiple lenders, a suitable lender was found.
Results
Their case was prepared within 2 days and the application was submitted. Their mortgage was approved in 10 days.
If you are an EU citizen who is looking for a mortgage with a low deposit, feel free to contact us to discuss your case
Mortgage for a Client on a Visa
The Situation
The client was on a spouse visa and had been in the UK for more than 3 years. They had a 10% deposit which was being gifted by their uncle.
Course of Actions
Most lenders require a minimum 25% deposit for limited leave to remain visa holder foreign nationals. After the fact find meeting, a detailed search was conducted and enquiries were made with different lenders. Some lenders accept a low deposit but only if the income was above £75,000 or the applicant should have lived in the UK for at least 5 years.
Result
After fact find meeting, a detailed search was conducted and enquiries were made with different lenders. A lender was found that was willing to lend with a minimum deposit of 5% and required only 2 years of UK residence history. Their mortgage was approved very quickly.
If you are on a limited leave to remain visa and need a mortgage with a 5% or more deposit, we can help you. Feel free to contact us to discuss your case. We offer free case assessments.
Mortgage for Foster Carer
The Situation
The clients were a mother and her daughter who jointly owned their home and were looking to remortgage it to fully repay their help to buy equity loan. The mother was a full time foster carer and had a part-time job as well. To achieve the required loan amount, their gross foster care income was needed to be accepted.
The complexity of the case
Foster care is one of those professions which have special tax treatment and not many advisers and lenders properly understand the nature of this income. Some lenders do not accept foster carer income at all and others either consider a percentage of it or consider the net income shown on the client’s tax return. They ignore the fact that foster carers are allowed to deduct certain allowances and have to pay tax only if there is any surplus income after the deduction of those allowances.
Course of Action
The client needed that gross payments from the care provider are to be considered to achieve the required loan amount. After detailed research and enquiries with lenders, very few lenders were willing to accept the gross income. Among those, the one with the best deal was chosen to apply.
Results
To make the case easy to understand for the lender, a detailed note was attached to the application. The lender was quick to assess the application and arrange the valuation. The application was approved smoothly.
If you are a foster carer in a similar situation and looking to get a mortgage, we can help you. Feel free to contact us to discuss your case. We offer free case assessments.
Mortgage on Benefits Only Income
The Situation
The client was a widow and a full time carer of her disabled child. Her only income was from benefits which included child benefit, child tax credit, child’s disability related benefits and widow pension. She had been trying to move to a house for years due to the reason that the existing house was not fit for the child. But she was told that it was not possible because she had no job.
The complexity of the case
The benefits being the only income was the biggest hurdle in this case. Also, the disability related benefits were in the child’s name. Most lenders require the earned income more than the benefits income and the benefits to be in the applicant’s name.
Course of Action
After a detailed fact find meeting with the client, enquiries were sent to several lenders which accept benefits income. It is our standard to send enquiries to the lenders before applying. This reduces the chances of refusal from the beginning. One of them responded positively and the application was prepared.
Results
The lender was quick to process their application. They carried out remote valuation. The mortgage was approved and the offer was issued within a week.
HMO Mortgage with No Landlord Experience
The Situation
The client was looking to buy a 6 bed HMO under a newly incorporated limited company. They had no previous experience as a landlord. Also, their personal debt was much higher than their personal income.
The complexity of the case
House in Multiple Occupation or HMO lending is a specialist field and only specialist lenders offer HMO mortgages and most of them require the applicant to have at least 12 months of experience as a landlord.
Also, most lenders apply personal debt to income ratio for buy to let mortgages. This means if the applicant has personal loans or other debts above a certain percentage of their income, they will not lend.
Course of Action
The client had multiple previous applications refused before coming to us. We completed a detailed fact find and research. Then enquiries were sent to different lenders which seemed to accept the case.
Results
A lender was found which required no previous experience and also did not have a debt to income ratio. To prevent the loss of valuation fee, the lender was requested to fully ass the application first and if they are happy only then book the valuation. Most lenders have an automated system of booking valuation that instructs the surveyors automatically as soon as an application is submitted. Everything went smoothly and the mortgage was approved.
If you are a property investor and need a buy to let or HMO buy to let, we can help you. Feel free to contact us to discuss your case. We offer free case assessments.
A mortgage with Default / Bad Credit
Another Mortgage Success Story
The Situation
The client was a first time buyer looking to buy a new build house. The house was still under construction. They had a CCJ of just under £1,000 recorded in 2017. It was satisfied in 2020. They had tried a mortgage through another adviser but was declined because of the amount of CCJ involved. They were referred to us by one of our existing clients.
The Case of the Complexity
The case was not straightforward. A recent hard credit search had further lowered the credit score. In this case, a lender was required that should manually review the case instead of an automated credit check. Also, the lender should be willing to accept a CCJ of such an amount.
Course of Actions
We asked the client for the latest copy of their credit report. After the fact find meeting, we conducted detailed research to find suitable lenders. Enquiries were sent. Some lenders showed a green light. We chose the lender with the best deal. After applying, the lender requested additional information that we provided promptly.
Results
The client received a conditional offer because the house was still under construction. Upon completion of work, the lender conducted a second visit and issued a binding offer. The purchase was completed shortly after. The client has moved to their brand new house.
If you are in a similar situation or have other credit issues, contact us for a free case assessment.
DISCLAIMER :
ZAS Mortgages & Protection Limited is Authorised and regulated by the Financial Conduct Authority (FCA reg.992843). The company is registered in England (Reg 12383115 ). Our registered office address is 555 Alfreton Road, Nottingham, NG7 5NJ. Contact No 0800 061 4173. E-mail: info@zasmortgages.co.uk
YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. YOU MAY HAVE TO PAY AN EARLY REPAYMENT CHARGE TO YOUR EXISTING LENDER IF YOU RE-MORTGAGE.
ALL MORTGAGES ARE SUBJECT TO STATUS AND LENDER CRITERIA. MOST BUY TO LET MORTGAGES ARE NOT REGULATED.
A PROTECTION PLAN WILL HAVE NO CASH IN VALUE AT ANY TIME, AND WILL CEASE AT THE END OF THE TERM. IF PREMIUMS ARE NOT MAINTAINED, THEN COVER WILL LAPSE AND YOU MAY NOT BE COVERED IF A CLAIM IS MADE.