A client recently contacted Enness because he was looking to secure a £400,000 remortgage in order to exit a bridging loan and capital raise to fund home improvements. The security for the loan was a property based in Dorset and worth £1.3 million. The required loan amount was made up of £320,000 to exit the bridge with an extra £80,000 for the property improvements.
My client’s primary residence was a 400 year old, 14 acre farm which came with various outbuildings, yet although an idyllic property and setting, properties such as farms with extensive land or complex structures, typically require a specialist lender that can price their products accordingly.
Property aside, the next challenge was my client’s employment. He was in a heavily commissioned based role which caused his monthly income to fluctuate greatly. Additionally, he had been in his job for less than 12 months at the time of application, which impacted the proportion of commission that high street lenders will accept for affordability purposes.
Between a poor credit history and being the victim of fraud, on paper my client’s credit file was not the strongest, so many lenders would not long entertain the idea of lending to him at all.
Albeit not a requirement, this client had a strong preference for an interest only deal using the sale of the mortgaged property (which is very rare amongst high street lenders).
Finally, with the exit strategy from the bridging loan being sale of the property, acting quickly was imperative for the client to avoid having to sell his beloved home.
This case is a perfect example of how we work regularly with our clients from the initial conversations right through to completion. Having first spoken in early November, I was able to assist in improving my client’s credit file and subsequently present the case based upon its genuine merits to the underwriter, overcoming the issues and queries that were naturally to be raised.
Whilst outside of lending criteria on a number of points, I managed to secure an extremely competitive 5 year fix with a rate of 2.25% with a high street lender on an interest only basis. My client was truly delighted with this result and has assured us that he will be referring any friends, family and colleagues in the future.