Getting a remortgage for a Zero Hours client – Wythenshawe, Manchester
An enquiry from the our website contacted Manchester Mortgages’ Wythnshawe office to discuss their re-mortgage requirements.
The client was a supply teacher who was on a zero hour contract for the last 6 years, age 51, separated with grown up children and still owned the marital home in joint names with her estranged husband.
The property was in Swinton and was worth £400,000 with an existing repayment mortgage with Halifax which had £21,000 outstanding with 3 years remaining – due to their differences over the years their mortgage had not been on a fixed rate and they had been paying Halifax’s standard variable rate ( 3.59% ) resulting in mortgage payments of £615 per month.
The client did not have any other outstanding debt such as outstanding credit card balances or personal loans.
The client needed to raise £54,000 to pay to her husband to get his name removed off the deeds of the property.
THE PROBLEM
The majority of lenders do not lend to people on Zero Contacts so that limited the number of lenders available.
Lenders that lend in this situation require the client to have been on zero contract for at least the last 12 months – this is where it got tricky – although client had been on the same zero contract with her original school for 6 years she was offered and took a 5 month temporary contract with another school in April 2021 ( she was promised a full time position after the contract ) but this did not materialise and she then returned to her original school in September 2021 – this meant she had not worked for the last 12 months on a zero hour contract.
This now meant that Halifax could not honour the promise they made at the beginning of the year to increase the mortgage and remove her husband’s name off the deeds and mortgage.
THE SOLUTION
As Manchester Mortgages are a whole of market / independent broker with over 70 years of experience we were able to think outside the box and we were able to research the mortgage market and recommended that our client re-mortgaged to a new lender ( a local small building society ) and increase their mortgage to £75,000 which included repaying existing mortgage and raising the capital to buy out clients estranged husband.
After fully discussing client’s requirements Manchester Mortgages recommended a 2 year discount rate payable at 1.79% over 15 years which reduced the mortgage payments to £475 per month – spot on clients monthly budget.
The lender offered a free standard valuation along with no arrangement fees – lender would have nominated a solicitor free of charge but client preferred to pay for and use her own solicitor.
CONCLUSION
With her re-mortgage completed our client is now the sole owner of the Wythenshawe property.
If you have an existing mortgage and wish to raise monies for that special purchase or to repay outstanding loans or credit card balances or wish to improve your property give MANCHESTER MORTGAGES a call on 0161 706 0242 to see if we can make a difference to your mortgage.
