Unusual Mortgages - Page 3 - Complex Mortgage Advice Service

Unusual Mortgages – Research Survey 2017 – Part One

By Chris Morgan | Published: 26th April 2017

Every year Unusual Mortgages conduct research into the current status of the mortgage market in the UK and in particular how Mortgage Consumers are being effected. Mortgages have become very difficult to obtain for many groups of people, with money in short supply with lending criteria being tightened and restricted across all mortgage products.

This year we decided to ask Mortgage Consumers several key questions relating to their confidence and accessibility of the UK mortgage market. The results of our survey were very interesting and pose some serious questions about where the UK mortgage market is heading.

We are splitting the results into two parts with the “Part One” focused on Consumer Confidence and Perceptions. Part Two will be released very soon …

Employed Respondents

76%* of respondents to our Mortgage Survey were Employed
70%* of Employed respondents believe Mortgages have become more difficult to obtain for Employed people
65%* of Employed respondents were concerned that they may have difficulty arranging a Mortgage in the future

Self Employed Respondents

24%* of respondents were Self Employed
85%* of Self Employed respondents believe Mortgages have become more difficult to obtain for Self Emlpoyed people
67%* of Self Employed respondents were concerned that they may have difficulty arranging a Mortgage in the future

The survey respondents are absolutely correct that Mortgages in the UK have become more difficult to obtain across the board, with certain groups of people finding it more difficult than others. The great “Mortgage Squeeze” has been constant over this last 5 years with criteria being tightened nearly every year resulting in the short supply of mortgage money.

Unusual Mortgages have seen many changes effecting in particular Self Employed people, those with Adverse Credit against their name and more recently those seeking Buy to let finance. Unusual Mortgages regularly assist people who are finding it difficult to obtain Morgage finance and are specialists in finding Unusual or difficult to find mortgages.

Free 15 Minute Mortgage Assessment

Unusual Mortgages offer a free 15 minute Mortgage Assessment over the phone for anyone that has been turned down for a mortgage elsewhere. We will confirm if the decision you were given is correct and assess your options across 70 lenders on our manual research list, from which we tailor bespoke solutions for our clients.

If you have been turned down for a mortgage or are worried about approaching lenders due to the way you have been treated in the past, why not give us a call. Within 15 minutes you will know if your hopes and aspirations are a reality, with a sound opinion from the most experienced mortgage broker in the United Kingdom at placing “Unusual Mortgages”.

If you require more information on Complex Mortgages, Multiples Mortgages, Buy to let, Self Employed or Adverse Credit Mortgages you can contact Unusual Mortgages on UK 0845 474 3075 or International +44 1404 45397, email at enquiries@unusualmortgages.co.uk

*The Unusual Mortgages Survey was completed by 100 existing clients and visitors to our websites and blogs between June 2016 and December 2016.

Unusual Mortgages – Free 15 Minute Mortgage Assessment

By Chris Morgan | Published: 29th November 2016

At Unusual Mortgages we meet many clients who have been turned down elsewhere by Banks, Building Societies and even other Mortgage Brokers. The key message that we have for people who are declined elsewhere is not to give up and to speak with the countries leading specialists at finding mortgages for people in Complex and “Unusual Circumstances”.

There are 70 mortgage lenders on our “Manual Research” list, that may be able to help you buy the property of your dreams, or add the next piece of your property portfolio. Just because one lender turned you down, it does not necessarily mean that you are a poor lending risk and you may in fact be mortagable with another lender.

Income & Affordability is the most common issue preventing applicants from achieving mortgage finance at the moment, with so many changes to mortgage criteria over the last few years. Lenders have become very strict with their criteria for evidencing income and for both employees and self employed applicants.

All lenders have different criteria around the documentation that is required to agree a mortgage, especially for Self Employed applicants. If your mortgage application has been declined due to income, or if the lender has failed to offer enough money, then be sure to seek specialist financial advice.

Adverse credit is also another key reason for mainstream banks for turning down mortgage applications, with late payments on credit cards and loan agreements currently the most common reason for applications to be declined. Some well known high street lenders decline applications, even if there is only one late payment recorded on the whole of a persons credit file.

Where applicants have had a discharged bankruptcy in the past, some mainstream lenders will automatically decline an applicant, where others are much more open minded. If there are County Court Judgements and Defaults in the past, this is also likely to rule out a number of high street lenders. However, there are now specialist lenders that are offering help to people in their positions and once again applicants should seek specialist financial advice.

Multiple Mortgages were announced in our recent survey as the most common reason for clients approaching Unusual Mortgages and we have a long experience of helping people secure “Large Mortgages”, especially for people who already have several mortgages in their name. Only a select few lenders offer mulitple mortgages to applicants.

This means that if you approach the wrong high street lender, you could be declined out of hand and left wondering the reason why you were not acceptable to them. The key thing to remember is that there are more than 70 lenders in the UK market and as Independent Mortgage Advisers we can help you find the right lender and products for your needs.

Free 15 Minute Mortgage Assessment

If you have been turned down for a mortgage or are worried about approaching lenders due to the way you have been treated in the past, why not give us a call. Within 15 minutes you will know if your hopes and aspirations are a reality, with a sound opinion from one of the most experienced mortgage brokers in the United Kingdom.

Unusual Risks Featured In The National Press – Top 10 Unusual Mortgages

By Chris Morgan | Published: 10th October 2016

Unusual Mortgages and Chris Morgan have been featured across the national press in the last few months, with focus on their work with people in the UK who are finding it difficult to secure mortgage finance. Over the last 12 months they have been closely researching the reasons that people take out Unusual Mortgages and have recently published the results.

They have a long history of working with clients to find suitable mortgages in Complex and Unusual circumstances. Chris Morgan spends a great deal of his working hours helping people secure mortgage finance, who have been turned down by standard high street lenders and need specialist Independent Mortgage Advice.

Here are some of the news articles that have appeared in the national press …

The Financial Times – FT Adviser

“Multiple applications top list of Unusual Mortgages”

https://www.ftadviser.com/2016/08/08/mortgages/mortgage-products/multiple-applications-top-list-of-unusual-mortgages-3nP2sr8yvWSDfU1DrXjRpJ/article.html

International Adviser – Leading Industry Website

“Multiple Mortgages most popular, says Unusual Survey”

http://www.mortgageintroducer.com/multiple-mortgages-popular-according-unusual-survey/#.V_tuX-ArLcs

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

Top 10 Unusual Mortgages 2016 …

By Chris Morgan | Published: 8th August 2016

Unusual Mortgages are today announcing the results of their “Top 10 Unusual Mortgages of 2016”. Their survey highlights the types of Mortgages that people are looking for and helps people looking for Unusual types of Mortgages to find specialist advice. The leading “Unusual” reason for people taking mortgages over the last 12 months was Multiple Mortgages*.

The survey was conducted amongst 100 mortgage applicants who were not able to find their ideal mortgage directly through a high street lender and had decided to approach an Independent Mortgage Adviser instead. The next most popular reasons for taking an Unusual Mortgage in the research were Employment Status*, Debt Consolidation*, Income & Affordability* and Divorce & Separation*.

Speaking about their Survey, Chris Morgan, Lead Financial Adviser of Unusual Mortgages said;

‘Unusual Mortgages are a progressive and innovative firm of Mortgage Advisers, who offer advice to people looking for mortgages who may not be able to obtain finance on the high street. We thought it would be interesting to run research into the most popular reasons why people might seek advice from a specialist Mortgage Adviser’.

‘We decided to run the survey to encourage those people who may be declined for a high street mortgage through their bank, building society or financial adviser to approach a specialist broker. Just because the first mortgage lender or financial adviser turns an application down, it does not always mean that a mortgage cannot be arranged. .

The message is that if at first you do not succeed in finding Mortgage Finance, not to give up and approach someone who specialises in Unusual situations. Sometimes applicants do not fit into tick boxes and electronic processing systems, so find a financial adviser that will treat you as an individual and use their knowledge to run bespoke research on your behalf.

Unusual Mortgages are a specialist firm of Mortgage Advisers that offer advice to people in Unusual Circumstances. This may be due to their employment status, income, affordability, marriage status, divorce, separation, health status, residential status, current age or one of a whole range of different reasons.

*Survey Results: Unusual Mortgages surveyed 100 Mortgage applicants, who were taking a mortgage through a Specialist Mortgage Adviser and asked them the main reason they were using a broker to find their mortgage.

These were the top 10 Unusual Mortgages 2016 …

1. Multiple Mortgages (20%) 2. Employment Status (16%) 3.Debt Consolidation (14%) 4. Income & Affordability (12%) 5.Divorce & Separation (10%) 6. Adverse Credit (8%) 7. Expatriate Mortgages (7%) 8. Capital Raising Unusual Purpose (6%) 9. Second Home (4%) 10. Borrowing into Retirement (3%)

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

The Unusual Mortgages Guide to Credit Scoring & Credit Checking …

By Chris Morgan | Published: 25th May 2016

As one of the UK’s most experienced Mortgage Brokers and an absolute specialist in Complex and Unusual cases, I’ve seen almost every scenario that you could possibly imagine in regards to difficult mortgage applications. When trying to place “Unusual Mortgages”, we have a sixth sense as to whether a mortgage application will be accepted by a lender.

The latest news is that Mortgage Lending has been restricted even further with some of the recent cases that we have encountered. There are several ways that Mortgage lenders can restrict lending and one of the most common is to tighten their criteria around credit scoring and credit checking.

Here’s a handy guide to Credit Scoring & Credit Checking …

Credit Scoring

This is where a Mortgage Lender uses your data and electronic credit file to score points. They will use several factors like your current residential status, employment situation, current credit card balances, payment history and mortgage track record to predict your future behaviour. (At this moment in time too many Mortgage Lenders are “Cherry Picking”!)

Credit Checking

All mortgage lenders will look at your electronic credit file to check your past behaviour with any contractual or financial commitments. They will definitely be looking at your past payment history, outstanding credit card balances and personal loans that you may have in place. (Mortgage Lenders see everything, so don’t even think about non-disclosing!)

Credit Card Balances

There has been a trend lately of Mortgage lenders declining to lend to people with “significant” unsecured debts like credit cards, personal loans and car finance. They are more likely to decline a Mortgage application if your outstanding credit card balances are over 50% of the approved limit. (So, your credit cards could be well managed and you still can be declined!)

Pay Day Loans

Mortgage lenders are highly likely to decline your application outright if you have recent activity with a pay day loan provider, even if the money was paid back on time. They view this as a sign that the person is unable to manage their current finances and are therefore unlikely to be able to manage a mortgage payment. (Mortgage Applicants should avoid Pay Day Loans at all costs!)

Adverse Credit

Many of the major lender groups will decline an application if there is any recent late payment history and especially if there are any past arrears, defaults or county court judgements. Those who have had bankruptcy or IVA’s in the past are almost certain to be declined by major high street banks at this moment in time. (Seek advice from a specialist broker, who will have more viable options than exist on the high street!)

Improve Your Chances

If you have adverse credit on your credit file within the last six years, then seek advice before applying for mortgages, as any declined applications or multiple applications, will have a further adverse effect on your chances of getting a mortgage. If you have equity, or a deposit, then it may still be possible to attract a lender, even with adverse credit. (Improve your chances by speaking to a specialist in Unusual Mortgages who know’s about adverse credit mortgages!)

Unusual Mortgages are one of the UK’s most experienced financial advisers at finding mortgages for both employed and self employed people, who are finding it difficult to acquire finance. We have specialist knowledge of Credit Scoring, Adverse Credit, Self Employed Income, Multiple Mortgages, Expatriate Mortgages, Buy To Let (with or without Income Verification), Minimum Income Requirements.

We are brokers that work closely with lenders that manually assess applications and offer a greater degree of flexibility for applicants and they may accept applicants with some past adverse credit history. We also work with a number of Mortgage lenders that have no minimum income requirements and verification on Buy To Let Mortgages. If you are finding it difficult to get a mortgage, then give us a call to discuss your requirements.

Are You Having Difficulty Finding a Mortgage? …..

By Chris Morgan | Published: 30th March 2016

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 !

Self Employed Mortgages … Latest Research

By Chris Morgan | Published: 20th January 2016

Unusual Mortgages are frequently contacted by both Employed and Self Employed people, who are finding it difficult to find Mortgage finance. One of the most popular questions that we are asked, relates to the verification of Income, this is especially common since the disappearance of Self Certified Mortgages.

Since the credit crunch Self Employed people have been required to declare their income, when applying for both residential and also the majority of Buy to Let Mortgages. There are still some lenders that offer Buy To Let Mortgages, without any minimum income, or without income verification, but this is for people in very limited circumstances.

Ipswich Building Society* have noticed that the lending environment for Self Employed people has changed significantly and have recently produced a very interesting piece of research. The study was conducted through members of The Association of Independent Professionals and Self Employed in 2015.

Here are some of the results from Self Employed people who were actively seeking mortgage finance …

77%* I am worried about having a limited choice of mortgage providers

76%* I may not be able to get a competitive mortgage rate

57%* I may not be able to get a mortgage

38%* I may have to remain on a higher rate if I cant secure a better deal

17%* I may have to get back to salaried employment to get a mortgage approved

Before the credit crunch it was relatively easy for a Self Employed person to get a mortgage, providing they had sufficient deposit money and a clean credit record. Things are certainly different now and Unusual Mortgages have found themselves helping many self employed people through the hurdles that they are facing.

Ipswich in their survey report, described this group of people as “Mortgage Misfits” and have suggested that they should seek out Mortgage lenders that will treat them as individuals. Most mortgage lenders are heavily reliant on automated electronic systems, so people in more unusual circumstances should seek out lenders that offer “Manual Underwriting”.

Unusual Mortgages are brokers that work closely with lenders that manually assess applications and offer a greater degree of flexibility for applicants. We also work with a number of Mortgage lenders that have no minimum income requirements and verification on Buy To Let Mortgages.

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

*Unusual Mortgage would like to thank Ipswich Building Society for permission to publish these facts and figures from their Self Employed Mortgage Survey 2015

Unusual Mortgages Consumer Survey 2016

By Chris Morgan | Published: 7th January 2016

Unusual Mortgages are currently asking Mortgage Consumers to complete this very short two minute survey. This will help us to campaign for better treatment of Mortgage applicants by the Mortgage Industry.

https://www.surveymonkey.co.uk/r/HGPSTZ3

Income & Affordability – Latest Mortgage Research – December 2015

By Chris Morgan | Published: 2nd December 2015

Chris Morgan is the Lead Financial Adviser at Unusual Mortgages, who are the UK’s leading experts at placing Complex Mortgages …

His clients normally approach him with bespoke and of course “Unusual” circumstances. Chris has nearly two decades of experience in placing mortgages for people in difficult situations and is a former finalist in the Financial Times, Mortgage Adviser of the year contest.

Most UK mortgage advisers solely rely on computer software to find mortgages for their clients, ticking boxes and answering rigid criteria questions. But, what if your circumstances do not fit into boxes, or your requirements are more “Unusual” than the computer software can handle?

Chris regularly undertakes bespoke research on behalf of clients who are looking for Mortgages that do not fit into boxes. Here are some examples of recent research he has undertaken …

Income & Affordability (Residential)

“Mortgage Lenders have become difficult to deal with and are always finding new reasons not to lend money!”.

By far the most common question that clients ask Chris, is related to their ability to meet the Income and Affordability requirements of Mortgage lenders. Especially people with Unusual types of employment and income that are finding it very difficult to obtain mortgage finance.

Did you know?

That the vast majority of mortgage lenders require self employed applicants to have been trading for three years and have accounts or financial statements for three years? However, there are in fact mortgage lenders that will accept only two years accounts or tax returns. (Of course we know which ones!)

Income & Affordability (Buy To Let)

“We have seen a dramatic change in the way that Buy To Let Mortgage lenders assess an applicants affordability”

Earlier in the year Unusual Mortgages conducted detailed research into the state of the Buy To Let mortgage market. We discovered that only 19%* of Buy To Let lenders have no minimum income requirements for applicants, with 81%* of lenders requiring between £20,000 and £50,000 of verified personal income for them to agree a Buy To Let mortgage.

Did you know?

That 3%* of mortgage lenders, are willing to offer Buy To Let mortgages without any form of Income verification, which of course we have found to be the most relevant statistic to some of our Unusual clients. There are still lenders willing to offer Buy To Let Mortgages without any Income checks to certain groups of people, (Of course we know which ones!).

Click here to read our Buy To Let Mortgage Survey 2015 http://www.unusual-mortgages.co.uk/?p=99

Knowledge & Experience

Unusual Mortgages are the UK’s most experienced financial advisers at finding Unusual mortgages for both employed and self employed people, who are finding it difficult to acquire finance. We have specialist knowledge of Self Employed Income, Multiple Mortgages, Expatriate Mortgages, Buy To Let (with or without Income Verification), Minimum Income Requirements.

Visit www.unusualmortgages.co.uk for our free Large Mortgage Fact Sheet

If you require more information on Large 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

*All facts and figures in this report were compiled in the Summer of 2015 by our lead financial adviser Chris Morgan after contacting 70 of the UK’s leading mortgage lenders.

The Buy To Let Mortgage Survey 2015 … Latest Market Review & Information For Landlords

By Chris Morgan | Published: 11th September 2015

Unusual Mortgages are one of the UK’s leading financial advisers, who offer advice to people looking for Buy To Let and Let to Buy Mortgages. Over the last two years we have noticed a gradual change in the lending rules for applicants looking to finance Buy To Let properties.

We have noticed a clear attempt from the Bank of England, Major Lenders and the UK Government to control Mortgage lending in the UK and in particular the amount of money being borrowed by mortgage applicants. This has meant that many groups of people are finding it very difficult to find Buy To Let mortgage finance.

Here are some useful facts and figures from our latest research into the Buy To Let Mortgage Market …

61%* of the Mortgage lenders surveyed offer Buy To Let Mortgages, which means that not all mortgage lenders that you approach will even offer Buy To Let Mortgages to their own customers.

97%* of Buy To Let Mortgage lenders verify the applicants personal income in some way. For example, they ask to see payslips, bank statements, tax returns or business accounts. (Of course, this means 3%* do not verify income!)

The average personal income that is required by a Buy To Let Mortgage lender in the United Kingdom is just under £25,000*. Of the Mortgage lenders that have a minimum income level requirement, the lowest was £20,000* and the highest £50,000*.

19%* of Buy To Let Mortgage lenders do not have a minimum personal income level for an applicant to apply for a Mortgage.

75%* of Buy To Let Mortgage lenders require the mortgage to be finished before the age of 75, which of course is a major concern to people taking out Buy To Let Mortgages as their plan for retirement.

25%* of Buy To Let Mortgage lenders will allow borrowing to finish past the age of 75, which of course allows applicants to keep their properties as a pension into retirement. (Some lenders will allow an applicant to keep their Buy To Let property indefinitely!)

All of the above facts and figures were compiled in the summer of 2015 by contacting 70* of the UK’s leading mortgage lenders. The aim was to compile a general “market view” for both our existing and potential new clients. We quickly realised from this research that the number of mortgage lenders in the UK asking applicants for proof or verification of income has increased significantly.

We also identified that only a handful of Mortgage lenders will agree a Buy To Let Mortgage without a minimum income requirement in their criteria and even fewer mortgage lenders are now offering Buy To Let Mortgages without any minimum income or without verifying the applicants income.

This has therefore made Buy To Let Mortgages very difficult to obtain for Self Employed people in particular, but not completely impossible. If you are looking for Buy To Let finance without any minimum income requirement, or without any income verification checks, then give us a call to see if we can help with your search?