Heavy Adverse – Re-mortgage

The applicant was the Managing Director of a London-based Limited Company, which had only been formed in the last 12 months, who was earning a healthy salary, and had to self-certificate as the income could not be confirmed, as the Limited Company had not yet appointed an Accountant. The applicant had a recent history of 4 months missed mortgage payments, with a Repossession Order on the two mortgage accounts held over the property by the existing mortgage lenders. There were also defaults registered on six credit cards. The loan to value percentage was 65%, and above normal lending limits due to the property value.

1st Call 4 Mortgages managed to place this case with a lender who offered a 2 year fixed rate at 6.89%, (the Halifax Standard Variable Rate was 6.75% at the time), without any penalty after the fixed rate ends. The lenders arrangement fee was just £699, which could be added to the mortgage.

By obtaining this mortgage, the client managed to lift the Repossession Orders, repay the credit cards and keep the monthly repayments at a very affordable level by consolidating the existing credit card commitments.

The APR percentage on this case was 8.9%

Light Adverse - Purchase

The applicants (a construction industry worker and a housewife) had sold their property in Devon and had a Completion date of 4 weeks away. They had considerable existing credit commitments and were effectively in an insolvent position, if they had to repay all their loans at once.

They were considering going into a rented property as they thought they could not get a mortgage as they had missed two recent payments on their mortgage, due to the seasonal nature of Mr’s employment. Their existing lender had refused to lend to them again, even though they had been with them for over 3 years.

They had two additional secured loans but could only afford to repay one of them after the sale of the property if they were to retain a deposit of 10% of the purchase price of the new property. They agreed to retain one of the unsecured loans after the property was sold. There were also some existing credit cards that had be repaid.

1st Call 4 Mortgages managed to place this case with a lender who offered a 2 year fixed rate at 5.79%, (the Halifax Standard Variable Rate was 6.75% at the time), without any penalty after the fixed rate ends. The lenders arrangement fee was just £595, which was added to the mortgage.

Although the applicants were not able to repay all their existing credit commitments, they were able to stay on the property ladder, avoiding having to go into a rented property, which could have made it even more difficult to buy another property in the future.

The APR percentage on this case was 6.9%

Buy to Let – First Time Buyer - Purchase

The applicant, a single person, employed in London, living in a rented property and a Foreign national with non-UK passport , living and working in the UK on an Ancestry Visa, wanted to start to build an portfolio of Buy to Let investment properties. She decided to buy a property in Glasgow, which had a good return for both rental income and capital appreciation.

Most UK lenders will not lend to non-UK passport holders on a fairly short term Visa, However
1st Call 4 Mortgages arranged a mortgage with a mainstream lender on a fixed rate of 5.19% (the Halifax Standard Variable Rate was 6.75% at the time) with a lenders arrangement fee of £595.

This case showed our tenacity in obtaining a mortgage that would not have been available through a ‘High Street’ lender, but still offered excellent terms to a first time investor.

The APR percentage on this case was 6.8%