Clients were purchasing a new residential property and needed a large mortgage loan but were experiencing a lending shortfall.
Had been to mortgage lenders on their own but were struggling to find a lender who’d be willing to lend them enough to purchase the new property.
Their residency status was causing issues with enders as they were non-UK nationals without settled status.
Our clients were looking to purchase a new property and move up the housing ladder.
They had a 15% deposit which they’d saved over several years. They were excited that they could finally look at purchasing a new place.
They’d been to lenders themselves to see what mortgage they could find however there was a lending shortfall with most. This meant that the new purchase wasn’t looking possible.
Both clients were also from the Czech Republic originally and did not have settled status in the country. Not being British citizens and/or having settlement status, a lot of mortgage lenders were either unwilling to lend to the clients at all or wanted them to put down a larger deposit than the 15% that they had available.
Despite our clients having clean credit files, good jobs with good salaries, and having saved a good deposit themselves, they were a bit lost about where to go and the dream of buying a new property looked like it was going to stay a dream.
How did we help?
The clients came to us to see if we could find any solution for their predicament, and we let them know that we would do everything we could in our power to help them. As the clients had already visited a few lenders themselves, we knew that this would not be an easy case to resolve however, being part of a large mortgage network, we have access to a lot of mortgage lenders with different criteria to the lenders that the client had already been rejected by.
After careful research our advisor managed to find one mortgage lender who was both willing to lend them enough mortgage but was not as strict with the client’s settlement status as the other lenders were. The mortgage lender we found for the clients agreed to lend to them on a discretionary basis as long as they applied for settlement status which they were more than happy to do.
Thanks to our help and advice, the clients managed to get enough mortgage to purchase the new property and didn’t need to put down any more deposit.
Our clients have also now been granted settled status in the UK.
What was the rate?
The loan was secured as a capital repayment mortgage on a fixed rate for 2 years at 1.54%. After the fixed period, they would revert to the bank’s 3.74% standard variable rate at which time we will contact the clients to discuss remortgaging on to a new competitive fixed rate.
The overall cost for comparison is 3.5% APRC. The arrangement fee was £999, and early repayment charges were applied. The mortgage term was 30 years.