90% LTV contractor mortgage for first time buyer

THE SCENARIO

I recently secured a high loan to value (LTV) mortgage for a client who was looking to purchase his first home in Hampshire, worth approximately £500,000. This client came to Enness with little experience in the property market and was yet to even place an offer on a property. Because of this, it was my job to ensure the whole process ran smoothly from start to finish, providing him with advice and guidance so he could place an offer with greater knowledge of the mortgage process and how to navigate the market in general.

This case was not without its challenges, however, as my client was an IT contractor with only 1.5 years’ worth of experience in the sector. This is outside of every lender’s standard 2 year requirement for self-employed individuals applying for a mortgage.

In addition to this, my client had a CCJ placed with a high street bank. Every lender’s standard procedure will usually deem this unacceptable when applying for a mortgage, yet in my client’s case, the CCJ wasn’t necessarily reflective of bad credit but rather admin issues on his behalf. Consequently, a lot of time was invested in smoothing the process between every area of my client’s financial profile – from the estate agent to the lender – to ensure the application was processed in the best possible way.

Luckily, my professional relationship with the managers of a private bank meant I was able to contact the right person in the decision process directly and secure a view based on common sense, rather than the lender’s standardized credit policy.

As a result, I convinced the bank that my client’s credit impairment was purely due to administrative issues rather than a case of bad credit. The lender was also happy to go outside of the usual employment history requirement.

OUR SOLUTION

I secured a £420,000 loan on a fixed rate of 2.89% with a 23 year term, despite being against the lender’s credit policy for the CCJ on file.

 

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