Our client is an employed professional contractor who wanted to port her existing mortgage to a new property.
She did not need any extra borrowing but was struggling to convince her lender to allow her to move her £403,000 mortgage. As she only had five months left on her contract and an annual income of £52,000, she did not earn enough to satisfy the lender’s income requirements. Effectively, she would be borrowing around 7.75 times her income and the lender was not keen.
Normally, we would source numerous lenders on a client’s behalf but in this instance it made sense to start with the client’s existing lender. Due to our close relationship with the bank, we were able to negotiate and transfer the mortgage onto another property without any review required of her current salary.
Key requirements: –
- Convincing the client’s existing lender to allow her to port her interest-only mortgage to her new property on the same terms.
- Ensuring the client kept her competitive variable rate of 0.44 per cent.
We spoke to the client’s lender and explained the situation. We recommended to the client that she keep her variable-rate mortgage at a competitive rate of 0.44 per cent.
Bridging Finance
With just over two months until the stamp duty holiday ends, if you haven’t got your mortgage organized yet you may miss out. But if you don’t want to lose out on up to £15,000, it may be worth looking at bridging finance. Bridging finance is a short-term solution until you can get a standard mortgage in place at which point. You pay back the bridging loan. It can be arranged in a matter of days rather than weeks. Ensuring you don’t miss out on the property you wish to buy, or the stamp duty saving. A number of specialist lenders offer bridging finance, with many of these products only accessible via a mortgage broker. A whole-of-market broker such as AWS, will be able to assist.
The application process
To support the mortgage application, the client supplied us with evidence of her fixed-term contract, as well as proof of identity. We were delighted to inform our client that the lender had agreed to her porting the mortgage on a like-for-like basis to her new home as requested.
Property value: £835,000 Loan amount: £403,000 LTV: 50% Rate: 0.44 per cent variable rate Lender product fee: £0 Monthly payment: £147
