Complex Cases

Struggling to find a high street lender?

If you are recently self-employed, a contractor, classed as an Ex-pat or have adverse credit then your bank probably couldn't help.  We can.

Contractors

Typically your high street bank will only want to lend in straight-forward cases. Although improving, the attitudes towards fixed term contractors (employed or self-employed) are limiting. The criteria will often involve “day rates” or contract renewals. You should have a copy of your current contract, any forthcoming contract and breakdown of your latest 2 year employment history (if applicable)

 

Self-employed

Not every self employed person will have 2 or 3 years worth of paperwork which is the requirement of the majority of banks. That said there are special lenders and schemes that can consider even just one years worth of trading. You should have to hand your last 3 years (if available) Tax Calculations and matching Tax Overviews. If you have an accountant who submits your accounts for you they will probably produce the Tax calculation using their own software and be able to obtain the Tax Overview themselves. There will also be lenders who may require your company accounts (if a limited company) or a specific certificate from your accountant. See this link for help obtaining the documents - sa302-tax-calculation

 

Adverse

Missed, late payments, defaults or County Court Judgements, there are many problems on your credit file that could affect lenders decision. People will often not realise or be aware of their adverse credit until they make a mortgage application. It can be a shock and serious obstacle to overcome, the best way forward is to have a copy of your full credit report and explanation as to any reason you may have poor credit. The main credit companies are Call Credit (Credit Karma), Experian and Equifax

You can use Check My File to access  4 credit companies all at once.

The key to a successful adverse application is making sure we are fully informed of all the facts, often people with historical issues are pleasantly surprised by the options open to them.

 

Ex-pat and non UK tax payers

You may have moved abroad, are not paid in Sterling or not liable for UK tax. These are unusual cases, viewed as higher risk so not many lenders offer products to help with this. Others may simply not have the licencing to deal with mortgages that are not paid in Sterling.

 

These cases tend to be looked at bespokely by the underwriters so taking as much information as possible to present to a lender is very important. Our experience here is key as specialist lending can be a minefield and lender’s appetites are regularly changing

 

As they are viewed as higher risk lending do not be surprised to pay higher interest rates.

Debt Consolidation

It is easy to get unsecured credit. Sometimes you make take out a credit card or loan to cover funding home improvements, maybe you have had cash-flow issues or had some expected costs to cover. The interest rate for unsecured loans will typically be higher than that of a mortgage. By consolidating the debt onto the mortgage you can reduce your monthly outgoings however this can cost you more over the duration of the total borrowing term

Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage

 

Joint Mortgage, Sole Proprietor

Guarantor mortgages were originally in place to help first time buyers on lower incomes using the parent’s income to justify affordability. Greater regulation has restricted their availability, leading lenders to create other products to help customers. The Joint Borrower, Sole Proprietor option came out several years ago and is slowly increasing in popularity. This is when family members can be added onto the mortgage application, their income and outgoings taken into consideration, but are not named as the owner of the purchased property. This will normally allow a greater lending amount (subject to the ages of the applicants) and help limit Stamp Duty. All applicants are advised to seek independent legal advice regarding this matter.

Bridging

Bridging finance works very well in the right circumstances but can be expensive.

There are various different options and some of the terms you may come across such as 1st or 2nd charge lending, retained or rolled up interest, cross charging, regulated or non-regulated, exit strategy or percentage fee may not be overly familiar or appealing. As with all of the scenarios a conversation with a knowledgeable and unbiased broker would be recommended, we can get a detailed understanding of your plans and timings which would enable us to advise on the most cost effective and best structure for your borrowing.

Your home may be repossessed if you do not keep up repayments on your mortgage.