Puzzle me a mortgage – we spotlight a complicated mortgage case
07 December 2023
Mortgage cases come in all shapes and sizes. A ‘classic’ purchase would be a client with a straightforward income and expenditure and a deposit. We search the market for the most suitable mortgage product that meets their needs.
But now and again a client throws us a curve ball. This was certainly the case for our adviser Matt and his client.
Matt’s client needed to raise capital to become an equity partner in the firm she worked for. She was in the middle of a fixed rate, meaning she would have early repayment charges if she wanted to make changes. She had limited equity in the home that would have fallen short on the loan amount anyway. The client’s parents however, had plenty of equity in their home, and they were more than happy to help their daughter progress her career.
It was decided… the funds would be raised from her parent’s home by remortgaging.
The deal was complicated from the outset as very few mortgage lenders allow raising capital for business purposes.
Secondly, there were tax implications of naming the client and her husband along with her parents on the title deed. Matt’s knowledge of the mortgage market proved invaluable, recommending a joint borrower sole proprietor mortgage. This type of mortgage allowed the client and her husband to be named on the mortgage along with her parents, but not on the house title deeds which would remain in her parents’ names.
The third complication was affordability. Matt was in the unusual position of having to use the client’s projected income to pass affordability criteria, rather than use her current income. A lender would normally only consider proof of previous earnings to pass these tests.
To add to these complicated circumstances there was a tight time frame to completion. A mortgage was sourced with a specialist lender and our admin team moved quickly and efficiently ensuring all paperwork was correct and uploaded to the lender swiftly.
The deal completed on time aided by great communication between the lender, Matt and our admin team.
“The service throughout the whole process was exemplary. Matt and other members of the team kept me informed at every step, they were knowledgeable, helpful and responsive. I would have no hesitancy in recommending them.”
As we are whole of market brokers, we have access to specialist lenders, and we can usually accommodate most circumstances.
Our team love a challenge! Why not give us a call?
Your home or property may be repossessed if you do not keep up repayments on your mortgage. For mortgages, we can be paid by commission or a fee of usually £495 or a combination of both. The actual amount will depend on your circumstances.
