The client

Our client wanted a mortgage of up to 73 per cent loan-to-value to purchase a new residential property. The case was tricky as our client is a day rate contractor with a five-year history in contracting but only two months remaining on his existing contract. We required a lender that would accept a fixed-term contract that was about to expire on the basis that the applicant had experience and history behind him so would be able to secure a new contract once his current one expired.

Numerous lenders were sourced but this deal required specific criteria and took a lot of research to identify a suitable lender.

If you are refurbishing or rebuilding a residential or commercial premises, or building one from scratch, then you may well need development finance. There is a wide choice of specialist development lenders offering a range of products to investors at competitive rates. Finding the most competitive terms can be tricky if you don’t know where to start. Which is where a whole-of-market broker, such as AWS, can assist. We enjoy good relationships with these lenders and have expertise in arranging development finance. We can identify the right development finance for your needs on competitive terms, guiding you through the process from start-to-finish.

Key requirements: –

A lender comfortable using the client’s fixed-term day rate contractor when assessing affordability. A lender comfortable with only two months remaining on the client’s existing contract. Borrowing at 73 per cent LTV on a property worth £570,000. Ability to add the lender’s arrangement fee to the mortgage.

But, after sourcing the mortgage market, we identified a lender who would agree to our client. Buying at 73 per cent LTV, basing affordability on his fixed-term contract.

The application process:

In other words, to support the mortgage application, the client supplied us with evidence of his fixed-term contract and income, as well as proof of identity. We were delighted to inform our client that the lender had issued a formal mortgage offer for the full amount requested.

Property value: £570,000 Loan amount: £419,999 LTV: 73% Rate: 1.43 per cent fixed for two years Lender product fee: £999 added to the loan Monthly payment: £1,563.37