Client’s Situation
Manchester Mortgages received a phone call on a Monday morning from a lady who had put in an offer on a property in Northenden, Manchester, 3 months earlier and was still waiting for a mortgage offer from the lender chosen by another broker.
The purchase price was £ 265,000 and she required a mortgage of £199,000 which was just over 75% Loan to Value.
She was age 46, employed and earned £46,500 per year, married with an 11 year old son, her husband had gone self employed 6 months earlier. They were renting a property in Sale paying £800 per month.
The family had moved from Brighton 12 months ago and rather than sell the property which was in her own name has rented the property out for £910 per month.
Part of the deposit was to be from savings the remainder from re-mortgaging the Brighton property by taking a Buy to Let re-mortgage.
The completion day for the purchase had been agreed with purchaser which was in 18 days time – her nominated solicitor had already done the searches etc but could not continue until a mortgage offer had been received.
Her original broker was not answering her calls, texts or emails, the Estate Agent or the solicitor were not aware of what was going on and the purchase was at a dead end.
The Problem
There were a number of problems –
Although her credit history was good prior to moving from Brighton she failed to advise M Power she had moved and as the power company could not trace her she did not receive correspondence regarding the outstanding gas & electric bills which lead to entries on her credit file showing missed payments of up to 6 months – the total amount was £600 and this was repaid – but only 6 months ago
The original broker was looking to introduce the purchase and Buy to Let re-mortgage to Precise Mortgages who then withdrew their acceptance once the above late payments came to light.
The original broker then approached Aldermore who again agreed to do both mortgages, however although Aldermore went to offer on the Buy to Let re-mortgage they reduced the mortgage amount on the purchase from £199,000 to £175,000 which meant a bigger deposit was required – money which she just did not have.
The vendor after waiting over 3 months for things to progress had given a deadline for the following Friday ( 4 days away ) otherwise the purchase was off.
The Solution
After researching the market we found a High Street lender willing to accept clients credit history and by advising client to reduce the mortgage amount slightly to within 75% ( £198,750 not £199,000 ) obtained a Decision in Principle.
The lender would also accept mortgage in her own name and on her own income.
The next day ( Tuesday ) Manchester Mortgages contacted the Estate Agent to advise that we had become involved in arranging the mortgage and emailed over the Decision In Principle to prove a mortgage had been agreed.
Manchester Mortgages also contacted the clients Solicitor who advised that they were waiting a mortgage offer so that the contracts could be drawn up.
That evening we met our client at her home and discussed the mortgage options available and obtained the required documentation for the mortgage application.
On the Wednesday morning the mortgage application was submitted to the lender along with required documentation by Manchester Mortgages and followed by a phone call which to the lender which accepted the documents and the valuer was instructed the same day which valuation access due on the Friday..
The property was valued and the valuer emailed the report to the lender who issued the mortgage offer that day which was then emailed to the Solicitor so contracts could be drawn up.
Oh and the best bit ! – the client obtained a 2 year fixed rate of 1,96% with no arrangement fees and will receive £1,000 cash back from the lender on completion.
Yes you read it right – a fixed rate of 1.96% !!! Aldermore and Precise rates were over 5% and even at those rates were unable to deliver – just like the other broker.
Conclusion
Thanks to our whole of market status and extensive knowledge of lenders criteria our clients are now the proud owner of a 4 bed property with mortgage payments of £ 895 per month.
Our clients also know when their fixed rate ends Manchester Mortgages will arrange another competitive rate with their existing lender.
To the best of our knowledge the other broker is still trying to place this mortgage some 3 months on – something Manchester Mortgages achieved in 3 days !
With Manchester Mortgages involved and speaking to and updating all parties – our client, Estate Agents & Solicitors were kept aware of what was going on which enabled this purchase to go ahead in the very short time frame involved.
Summary
Who says miracles do not happen – a 2 year fixed rate at 1.96% with 6 late payments within the last 12 months and a mortgage with a High Street lender who pays £1,000 cash back on completion says they do !
Whatever your circumstances please contact us on 01671 706 0242 to discuss your requirements – you never know you might be our next miracle !
