Location: Bath
Amount raised: £430k
The scenario
We were approached by a couple who wanted to buy a new home. They had a mortgage on their current home with a high exit charge, so they wanted to transfer it to the new home to avoid paying a penalty. The property was a new build, and the developer had recommended a broker they work with. However, the couple experienced significant delays and were told that it might not be possible due to their credit score. They decided to get a second opinion.
Our solution
We reviewed their credit profile in detail and we were able to help them improve it within 48 hours. We then reviewed the market and factored in their exit penalty. We decided to port the existing mortgage and take additional borrowing that the clients had requested. As their current fixed rate was due to expire within three months, we incorporated the new borrowing in to their existing loan. This small change will save them over £18,000 across the mortgage. The clients were approved within 12 hours of submitting the application, subject to valuation. The previous broker had taken three months and not reached this stage.
When the valuation was returned to the bank, the surveyor had made an error. The bank requested we reduced the loan amount by £17,500 to accommodate the report. While most high street banks are unwilling to challenge a valaution report, we were able to work with out contacts a the bank to have a revise reported created by the surveyor. This ensured that the client was not disadvantaged and was able to receive the full amount applied for.
Mortgage applications through high street banks are heavily dependant on the results of credit scoring. There is little to no appeal process if you are declined at this automated stage. This is why it is important to work with a broker who understands the nuances of credit profiling. If the client had remained with their original broker and switched lenders it would have been a costly mistake.
The client also faced additional hurdles with the legal work. We were able to liaise with the developer, the solicitor and the bank in order to ensure our client was able to purchase their dream home.
Have you been declined for a loan by a recommended broker? Don’t give up! Contact Orton Financial today and let us help you get approved for the loan you need. We have a team of experienced brokers who will work with you to find the right lender and get you the best possible terms. Contact us today to get started!