Case Studies

As you can see we get real mix of enquiries and we're getting some great feedback on our service too:

08th March 2017

Mrs Smith is a 72 year old widow and lives alone in the family home in London worth £3,000,000.

She requires a £1,400,000 mortgage over a 10 year term on an Interest Only basis.

She has a pension income of £40,000 a year.

Her current interest only mortgage term is coming to an end and she urgently needed to re-mortgage as
her existing lender would not extend the term.

We asked the broker for a bit more information to see if there were any family members (son, daughter etc ) that could assist as a joint applicant or Guarantor.

He came back and confirmed her son is an owner occupier with a mortgage of £2,800,000 with a monthly mortgage payment £5,000, but he also has a large number of outgoings. He owns a number of businesses but takes his annual income of £700,000 as a directors loan, his business assets total in excess of £32,000,000.The case did not fit affordability due to nature of his income so we needed to discuss it further with our panel of lenders.

To summarise, we needed to find a lender who would consider the whole scenario of a Large Loan, Lending in Retirement, Failed Affordability, Mother & Son / Guarantor and Directors Loan income.

After some extensive research our experienced Mortgage Helpdesk were able to get the case agreed by two of our Panel Lenders.

Lender A agreed to proceed on a Joint mortgage basis and Lender B agreed to proceed on a Guarantor basis.

It is this “outside the box” thinking by our Helpdesk and lenders that saved the family home and meant we could get back to the broker with Good News.

So, if you have a mortgage enquiry that you think is just too difficult or are struggling to place call us NOW on 01329 245800...

28th February 2017

We recieved an Ex Pat BTL Enquiry from one of our brokers
Mr is French National and Mrs is British
They are living in Australia and have been there for just 1 year.
Mr is Self employed with a Start up business less than 1 years trading Mrs is Employed since May 2016
They wanted a Like for Like Buy to Let Remortgage of £2,400,000 on £6,100,000 value
Rental income £16500 per month and they have a BTL portfolio

We discussed the case with a Building Society that provides SMS with an onsite underwriter.
The case was discussed, assessed, Approved in Principle and the requirements emailed to the broker in less than 24 hours.

Call the SMS Mortgage Helpdesk NOW on 01329 245800 to discuss your next enquiry

14th February 2017

Broker emailed in a link to a property - it currently has no bathroom or kitchen, clients were looking to purchase the property. We originally thought to decline this enquiry as the property was uninhabitable.

Instead we discussed this with one of our lenders, they advised that they would consider this type of case, up to a LTV of 50%.

14th February 2017

First time buyer, works full time as a roadside mechanic on a basic salary of £29k, also receives a high amount of additional income for overtime, call out and call out standby.

Case referred to our on-site underwriter who went through the payslips and was able to use the majority of the additional income. We achieved a loan amount of 6x the basic salary by including regular overtime, even with a default in the background.

7th February 2017

A client was looking to purchase his first property. He previously had a conviction for ABH in 2012 (He was given a 12 month custodial sentence, he spent 3 months and spent the remaining 9 months on license/probation)

The case was dipped with the a lender, automatically declined, however we discussed in full as per our previous days talk with the lender regarding the case. This case has now been accepted and a list of requirements has been sent out.

7th February 2017

First time buyer who was looking for 90% LTV. Has had previous adverse including; status 6 on an unsecured loan (still current), a default on a payday loan in 2014, satisfied in 2015 for £800 and also 5 payday loan in the background (satisfied).

We lowered the loan to value to 85% and found a lender to look at this case. We could have gone to two other lenders however maximum loan to value would have been 75%.

17th January 2017

Can You Help…. My Contractor Client has only recently entered into a DMP and wants to remortgage?

Our broker had a client who had entered into Debt Management Plan (DMP) just 3 months ago in October 2016.The client now wants to remortgage to pay off some of his unsecured debts as he has been offered Full & Final Settlements on some of these since entering into the DMP. He is working as an IT Contractor and only had 3 months left on his contract.

We were able to offer an 85% remortgage using the clients remaining 3 month term of his contract on his Day Rate x 5 x 48 basis. This enabled him to pay off the majority of his unsecured debts and reduce his outgoings. He was also able to restructure his DMP and keep this going.

This is just one of the hundreds of enquiries we receive every month and are able to assist with.

So next time you get a case that you think may be too difficult to place or a non starter don’t dismiss it , SMS IT!!.

Call the SMS Mortgage Helpdesk NOW on 01329 245800 to discuss your next enquiry

10th January 2017

Lenders that will help, just ask our Helpdesk!

We thought it would be good to detail some of the enquiries and cases that have been seen and solutions
found this year (last week).

  • Mr. A, been in a DMP since March 2016 and wants it to remain post completion.
  • Miss R & Mr B, have 3 defaults totalling £23k registered 18 months ago and still outstanding.
  • Mr & Mrs S, Mr is a contractor with a low credit score.
  • Mr & Mrs M, have 2 defaults totalling £8k and 1 ccj totalling £2k, all registered 13 months ago. Mr has also only been Self employed for 1 year.
  • Miss N, wants to purchase her parents property with the use of gifted equity and has none of her own deposit monies to put in.

13th December 2016

Mr R was employed as a Project Manager for over 10 years but recently started contracting for the same company. He has 3 defaults totalling £14k registered within the last 2 years which were as a result of a messy divorce.

Here's what happened

We have a lender that is happy to look at day 1 contractors as long as there is 3 years history in the same line of business and only need 3 months remaining on the contract. Affordability is also based on daily rate x 5 x 48 weeks. Even if a limited company has been set up our lender can still use the contract rate. As payments have been maintained since the divorce and the default levels don't exceed the lenders maximum they were happy to approve Mr R's application.

My customers are First Time Buyers and not on the Voters Roll but are looking to buy their first home
with a 15% deposit. Affordability may be a little tight , so Mum and Dad offered to act their guarantors.
Can you help?"

We said:

"Yes – our chosen lender doesn't credit score and each case is manually underwritten. There is no requirement to be on the voters roll either. They don't offer Guarantor Mortgages, but they do allow up to 4 applicants so Mum and Dad can be party to the mortgage and we can use their income to help with the affordability."

6th December 2016

My customer had a £10k default 18 months ago but it's now satisfied, they need to borrow 85% LTV. Can you help?

We said:

"Yes - we have a lender willing to consider up to 85% LTV. They do not have any monetary restrictions against defaults or CCJ's".

£25,000 further advance for debt consolidation taking the applicant's total borrowing with the lender to £246,105 at 62% LTV based on an index valuation of £398,102.

There are three applicants - Mr and Mrs and their son. Apps 1 and 2 are both retired and will be aged 89 and 88
at the end of the mortgage term. Their son will be aged 64. Four credit card accounts were to be repaid
as a condition of the offer to ensure affordability criteria was met.

The existing lenders mortgage account has been and continues to be well conducted since
commencement in September 2014. Income has been confirmed using the pension
statements for Mr and Mrs, along with three months’ payslips and P60 for their son.

Affordability is sound based on these details provided the credit cards are repaid.

29th November 2016

£190,000 purchase at 80% LTV over a 15 year term. Applicants own their existing home outright and are looking to purchase a holiday home. The applicants will be 78 and 91 at the end of the mortgage term.

Three months bank statements have been received for applicant one which are well conducted with a healthy credit balance. Regular pension credits are received. Two months worth of banks statements were sufficient to prove satisfactory management of personal finances for applicant two. Good credit balances are maintained and we can see pension credits. There are a number of undeclared charity contributions which have been added to the outgoings for affordability purposes. Satisfactory credit searches have been carried out for the current and linked addresses.

As requested on the DIP we have received confirmation that their pensions will be paid to each other in the event of one applicant predeceasing the other. Deposit funds are seen in their bank account statements.

29th November 2016

My customer wants to purchase his parents property at under market value. Would you consider gifted equity? He also has 1 CCJ and 1 default from 18 months ago."

We said:

"Yes - Our lender will lend 100% of the purchase price and still base the LTV against the true property value. They can also cater for the credit problems."

23rd November 2016

Mr & Mrs T want to borrow £192k to repay their existing mortgage, £9k to repay 2nd charges or other loans, and £30k for home improvements. Their property is worth £700k.

During 2011 - 2014 their daughter became seriously ill so Mrs T had to give up work to care for her. Mr T had also just left employment to start his own business. These pressures on the household finances resulted in 4 defaults totalling £36k and some mortgage arrears.

Here’s what happened:

The defaults are all over 3 years old so we ignored them, the mortgage arrears were also over 12 months old so we ignored those too. The new mortgage payment is £300 less per month than their current mortgage and loan payments. Payments have all been made satisfactorily since the life event so our lender was happy to approve the application.

And this lender offers on all Residential Remortgages, free basic legals and a free valuation!

23rd November 2016

I have a customer that has a fairly new business with just 1 years accounts. He also has a default for £150 registered on a credit card in September this year. Every other lender can't help as the default was registered in the last 3 months! Can you help?"

We said:

"Yes - our lender can help customers with just 1 years accounts. They also ignore any defaults under £250, regardless of when they were registered."

23rd November 2016

£50,000 loan at 20% LTV. Applicants are currently owner occupiers and are looking to downsize. Applicants are retired and the term requested will take them in to their late eighties at the end of the mortgage. Life cover is being arranged should one applicant predecease the other and we have seen documentation to support this.

Applicants are in receipt of their own private pensions in addition to state pension. Regular credits are seen in the joint bank account statements provided. Bank statements evidence good conduct. A credit card is the only form of committed expenditure.

The credit search on current and linked addresses shows that all credit accounts have been conducted satisfactorily.

The bulk of the deposit funds will be raised from the sale of the existing property (circa £150k) and the remaining from savings totalling circa £75k.

 

Working with Lenders.

Providing Intermediaries with Lending Solutions.