A regular client of Oportfolio and experienced landlord came back to us to look at remortgaging some of her rental properties to avoid going on to the standard variable rate and also to release some needed equity. We carried out a decision in principle which should have passed no problem however these credit checks unexpectedly declined.
We then approached another lender but these credit checks also declined unexpectedly.
Our client has been using our services for years to arrange residential mortgages and protection and several buy to let mortgages. As her trusted mortgage broker, we were more than happy to help when she approached us to discuss remortgaging some of her rental properties and releasing some equity she had tied up in them. Her fixed rate mortgages were coming to the end of their period and were due to fall back on to the SVR which would have been very expensive for her. After discussion several scenarios in detail with our advisor, our client gave us the go-ahead to run a credit check for her which is standard practice when getting a mortgage.
Surprisingly the credit check came back as a decline with no reason given. When we contacted the mortgage lender to discuss the decline, they advised that the client should check her credit file which she did. To everyone’s shock, our clients credit score had dropped very low with no reason for it visible. She had not missed any payments, defaulted on any credit, and had no CCJs or Bankruptcies.
How did we help?
Our team then realised that we really had our work cut out for us! As our client’s credit score was low but there was not any adverse on her credit file, we needed to find a lender who was not so strict on credit score and would look at the merits of the client and her experienced landlord status. Our advisors and admin team put their heads together and searched the catalogue of lenders that we have access to, and we managed to find a lender who would accept the client’s credit check and would also lend her enough on her remortgage to release some equity.
Our client was over the moon despite the unexplained drop in her credit score and can now rest easy knowing that her remortgages application is all in hand and she will soon be on a new competitive rate with a good lender.
What was the rate?
The loan was secured as an interest only mortgage on a fixed rate for 5 years at 1.89%. After the fixed period, they would revert to the bank’s 3.25% standard variable rate at which time we will contact the clients to discuss remortgaging on to another new competitive fixed rate.
The overall cost for comparison is 3.3% APRC. The arrangement fee was £999, and early repayment charges were applied. The mortgage term was 25 years.