A million pound remortgage with adverse credit may sound like a pipe dream. This case was a great example of how specialist and private lenders will take a more holistic approach when assessing a client’s circumstances, rather than defining a case purely by tick-box criteria.
I secured a loan for a client who was looking for a £1 million remortgage on his main residential property, as it had reverted to the standard variable rate (SVR). Speed was key to this case to ensure that we were able to reduce his current mortgage payments to half the figure of which they currently stood – so it was crucial that we got this right first time.
My client earned more than enough to service the mortgage and also owned a considerable property portfolio, which could be used as a suitable repayment vehicle to cover the loan on an interest only basis. Often in this circumstance a client would be able to approach the most competitive high street lender, although my client had a poor credit file – which is always likely to cause problems when applying for a mortgage.
Having a mortgage on an interest only basis means that high street lenders will always be looking for a squeaky clean credit file. My client had unfortunately missed some mortgage payments within the last two years, which had all occurred around the same time as his divorce. This affected his application and meant the high street banks were against lending to him.
I was able to approach a private bank that would be happy to take the case on board. This was due to my client demonstrating good management on his investment portfolio, both before and after the missed payments. He was also able to display an impeccable record with his residential mortgage – reinforcing the point that difficult personal experiences were a genuine factor to consider.
The private bank was happy to lend the full loan amount on an interest only basis, and I was able to secure a 2 year fixed rate at 1.89%. An exceptional outcome for someone with recent adverse credit history.