Client Background
The client owned a property in London and was seeking to remortgage it. They lived in the property alongside two lodgers, who did not have formal tenancy agreements. This arrangement was acceptable as long as the client continued residing in the property. Lodgers are a common occurrence in London, given the city’s high property prices, but income from lodgers cannot always be factored into mortgage applications.
Challenges
While preparing the credit report for the application, the client discovered adverse credit associated with a utility company for a property they never occupied. This issue could have delayed the process if the adverse credit needed to be resolved prior to proceeding. Additionally, it was crucial to identify a lender willing to accept lodgers under the client’s specific circumstances.
Solutions
After careful consideration, a lender was found that accepted the presence of lodgers, as there were no formal tenancy agreements in place and the client was still living in the property. The bank reviewed the adverse credit report, and upon receiving a reasonable explanation from the client, decided to overlook it. This allowed the application to move forward without needing to rectify the adverse credit first. This removed the need to approach more expensive, adverse lenders.
Outcome
The remortgaging process proved to be straightforward, taking only one week from application to offer. The client successfully secured a better mortgage rate, avoiding the previous lender’s variable rate. This timely solution not only saved the client money but also provided peace of mind with a more favourable financial arrangement.
Facing a similar challenge? Here’s how we can help
If you’re considering remortgaging but are concerned about complex financial situations, such as adverse credit or non-traditional living arrangements, don’t hesitate to seek expert advice. The right lender and approach can make all the difference, saving you time and money while securing a more favourable financial future. Contact us today to explore your options and move forward with confidence