Client Background: We worked with a private residential buyer seeking a mortgage to purchase a residential property just outside of London. He had been rejected due to having a history of adverse credit issues.
Property Information: The home in question was a private property on London's outskirts, being purchased as a long-term private residence. Our client had a 30% deposit available and needed to mortgage the balance.
Financial Requirements: In total, the client required a mortgage to the value of £350,000 to purchase his home. The preferred term when working through monthly repayment cost illustrations was a 30-year mortgage.
The Revolution Brokers Solution:
The Revolution Brokers team consulted with our client to understand the background behind his adverse credit problems. A previous lender had rejected his application since his credit file showed multiple defaults, as well as payday loans.
On inspection, the defaults occurred over a year ago, and he had since repaid his financial obligations. The payday loans fell into the same period, with all of the missed payments in a 36-month window.
During this time, the client was dealing with some challenging family situations and severe ill health of both parents and had struggled to cope with the financial burden - hence falling into arrears and having since made good on all outstanding debts.
Following a discussion with our recommended lender, they were able to make an exception and accept the mortgage application. We will revisit this in two years to assess whether there is a more competitive refinancing option available.
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Property Valuation:
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£500,000
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Total Mortgage Borrowing:
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£350,000
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Loan to Value Ratio:
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70%
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Negotiated Interest Rate:
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4.42% - to refinance in two years.
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Mortgage Term:
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30 years
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Monthly Payment Value:
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£1,720
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Arrangement Costs:
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£1,495
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