Manchester Mortgages received this enquiry through our Contact Page on our Web Page.
Our client was a 49 year old builder who had been self employed for the last 20 years, he was single with no children and was looking to purchase a property to live in and renovate.
Client had a good credit history with no financial commitments and a large deposit in his Halifax bank account.
He already had an offer accepted on a property for £150,000 and required a mortgage of £65,000 as the property had been owned by an elderly couple and was in need of updating and he did not wish to use all his funds on the deposit.
Taking all of the above into consideration you would not think our client would have a problem obtaining a mortgage for £65,000 and that lenders would be lining up to offer them a mortgage.
However, when looking at their HMRC tax returns profits over the last two years their latest years profit was £15,010 with the previous year being £14,860.
He had already approached his bank Halifax but they would only lend him £41,000 which was way short of the £65,000 required.
After researching the whole of the market Manchester Mortgages found a lender willing to lend the £65,000 required on a competitive two year fixed rate with no arrangement fee and a free standard valuation.
All lenders have their own affordability calculations and criteria which means there can be a vast difference between what lenders will lend as this example shows.
Our client now owns the property and by fixing the mortgage rate our client will know what their mortgage payments are for the next 2 years.
Also by fixing their mortgage rate for 2 years it will mean that when Manchester Mortgages contact our clients to review their mortgage hopefully their income will have increased and we will be able to research the market for an alternative lender if required.
Even straight forward looking mortgages have some sort of twist to them – we know because Manchester Mortgages deal with them every day – contact us on 0161 706 0242 or send us a message through our contact form on our Web page to discuss your requirements.