Unusual Mortgages are regularly contacted by people who are finding it difficult to arrange a mortgage. Their reasons are normally due to employment status, affordability issues, residency issues or simply another broker seriously overcharging clients for their services.
Rarely do we encounter a client that encompasses all of these issues, so we have created this case example for you to highlight some of the areas that Unusual Mortgages can help both new and existing clients. This case example shows why we are simply the best broker for finding Mortgages for people in Complex and Unusual situations …
David is aged 42 and is a Managing Director of a printing company …
“I’ve recently returned to the UK after spending time in the United States, running the North American Subsidiary of the Company which I now work for. My situation is very complicated because I previously owned the company that I now work for as their Managing Director and lenders keep asking me complicated questions”.
David Continued …
“The main issue seems to be related to my employment status and the fact that I previously owned the company. Lenders cannot seem to be able to get past the fact that I’m no longer self-employed. They seem to be seriously questioning if I can afford the new loan, even though I’m downsizing and reducing my mortgage”.
David said this about broker fees …
“I thought I had found an option, but the financial adviser involved wanted to charge me £6,000 for the arranging the finance, which I thought was excessive for the amount of work involved. Is it normal to charge a whole 1% of the advance on Larger Mortgages of £600,000?”.
There are a number of reasons why David has been having difficultly finding a mortgage, so lets take each one in turn and offer some advice and guidance for each reason.
Residency Issues …
Most mortgage lenders in the UK require an applicant to have been in the UK for three years constantly, prior to making an application. Mortgages are now almost wholly processed electronically, with mortgage providers placing a great emphasis on an applicant being present on the voters roll at their address for the past three years.
However, there are some lenders that will consider an application from people who have been in the country for less than three years. Unusual Mortgages have contacts with mortgage lenders that will consider an application from people who have returned to the UK from other countries.
Employment Status …
It is “Unusual” that someone could become an employee (Managing Director) of the company that they once owned, however, from our case example you can see it is not impossible. The key to this is making sure that the percentage of any shareholding that you are left with is below the requirements of any mortgage lender.
We are approached by people all the time saying they are an employee of the company that they own, thinking that this is an easier way to get a mortgage. Most mortgage lenders will consider you as “Self Employed” if you own 25% of any business, or above this percentage. However, not all mortgage lenders are the same and you should speak to us if you are facing this issue !
Affordability Issues …
In the “Good Old Days”, before the credit crunch, someone could phone their bank and ask to downsize their mortgage and they would do this without any questions asked. You would think that if someone has maintained their mortgage payments and are asking for less money, then this would be enough to agree a new mortgage.
Many Mortgage lenders now assess affordability for existing borrowers in the same way as any new applicant walking through the door. This is causing lot’s of difficulty for genuine borrowers, who would like to reduce their outgoings and even pay off their unsecured debts. Once again, not all mortgage lenders are the same and you should definitely speak to us if this is currently a problem that you are facing.
Broker Fees …
£6,000 ! Let’s just say that again .. six grand! David had been speaking to another mortgage broker, who was using his unfortunate “Unusual” circumstances against him and wanted him to pay £6000 to arrange a mortgage. We have been outspoken about brokers charging 1% to 2% of a mortgage advance before and we think this is disgraceful!
If your case is as complicated as the one one in this example, you will definitely need specialist mortgage advice from someone who is highly experienced and knowledgeable. The adviser will of course charge you for their time, but this should be a fair and reasonable fee in line with the Financial Conduct Authority’s – “treating customers fairly” rule.
Unusual Mortgages charge fixed fees for our services, which work out a great deal cheaper than brokers who charge a percentage of advance to their clients. If you are having difficulty finding a Mortgage or have “Unusual” Mortgage circumstances, then give us a call to see if we are able to help !
Unusual Mortgages are currently conducting “The Unusual Mortgage Consumer Survey 2016″ and would appreciate if you would take just two minutes to give us your views on the Mortgage Market for both Employed and Self Employed people. https://www.surveymonkey.co.uk/r/HGPSTZ3
If you require more information on Complex Mortgages, Buy to let, Self Employed or Executive Mortgages you can contact Unusual Mortgages on UK 0845 474 3075 or International +44 1404 45397, email at enquiries@unusualmortgages.co.uk