In this instance I was working with a female client who was mid-way through her divorce and needed a high value remortgage on her house in South-West London as a consequence. The house was presently unencumbered but she needed to raise capital of £850,000 in order to pay her husband a settlement using the funds from the high value remortgage.
Whilst this sounds fairly simple, one of the problems was that she was self-employed as a fashion designer and her income – approximately £180,000 – had fluctuated over the last couple of years. That meant I had to find a lender happy to lend with inconsistent remuneration even for some self-employed.
She also had multiple credit cards and had accumulated some bad credit due to missed payments. This can negatively affect your credit rating, as I am sure you know.
My client’s age was also an obstacle to overcome. She was in her mid to late fifties – a fact which makes most lenders cautious due to the probability of borrowing past state retirement age and the ongoing affordability from then.
Initially I struggled to source a lender happy to overlook my client’s adverse credit for this high value remortgage. After sourcing a lender who would consider the situation I spoke to an underwriter I work with and explained in detail the reasoning behind the missed payments.
They took a view on this because my client’s declining financial circumstances were clearly linked to her divorce. As such they decided to a more reasonable view of her missed payments while also stretching the loan term past state retirement age on the basis her career could continue. This enabled my client to reach the required amount.
The final rate we settled on for this high value remortgage was 3.1% – excellent considering her adverse credit.