Self employed first time buyer with a declining profit

A CASE STUDY

CLIENTS SITUATION

Manchester Mortgages received this enquiry through our contact page on our web site.

filming a tv showOur client was a First Time Buyer who had been self employed for the last 3 years in TV production and was in their mid 30’s had no children and was looking to purchase their first property.

Client had a Student Loan and with a monthly payment of £ 115 per month with no other financial commitments and a good credit history.

Client had up to £ 25,000 available for the deposit and was looking at properties around £ 170 / £ 175,000.

THE PROBLEM

Taking all of the above into consideration you would not think our client would have a problem obtaining a mortgage and that lenders would be lining up to offer them a mortgage.

However, when looking at their profits over the last two years their latest years profit had declined sharply due to a change on the TV programmes they were working on.

The declining profit resulted in the majority of lenders not being able to offer our client a mortgage with other lenders needing to refer to an underwriter who would require more detailed information regarding trading figures and future profits before making any decision

THE SOLUTION

After researching the whole of the market Manchester Mortgages found a lender willing to lend on a competitive three year fixed rate who was also willing to accept the declining profits without further investigation.

CONCLUSION

Our clients now own their first property and by fixing the mortgage rate clients will know what their mortgage payments are for the next 3 years.

Also by fixing their mortgage rate for 3 years it will mean that when Manchester Mortgages contact our clients to review their mortgage hopefully the declining profits will be a thing of the past and we will be able to research the market for an alternative lender if required based on increasing profits.

SUMMARY

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