Mortgages for Nurses
A case study
Purchasing a residential property with an existing debt management plan
Both Mr & Mrs C were both in their early fifties and both worked as Nurses at Wythenshawe Hospital and both earned around £26,000 per year each, they had 2 grown up children who still lived with them.
The property they were selling was valued at £140,000 and they wished to purchase at £190,000.
Clients also had a personal loan with £6,300 outstanding with repayments of £170 per month which they were looking to repay from the sale of the property.
Both Mr & Mrs C had a poor credit history – they had entered into a Debt Management Plan in 2015 which still had £9,500 outstanding and they were paying £106 per month – they were intending to repay this from the sale proceeds.
The majority of lenders do not lend to people who are in current Debt Management Plans or require the debt to have been repaid over 12 months or longer dependent on the lender.
Therefore the current Debt Management Plan even though to be repaid limited the number of lenders available.
After researching the mortgage products available across the whole of the market, Manchester Mortgages found a lender willing to lend the £95,000 required on a competitive three year fixed rate and who were also willing to accept that the current Debt Management Plan was to be repaid.
The lender offered clients a three year fixed rate at 3.44% with no arrangement fee and a free standard valuation over a 18 year term on a repayment ( capital & interest ) basis with mortgage payments of £591 per month.
The lender recommended only accepted Solicitors from a limited panel and Manchester Mortgages were able to recommend a local Solicitor on the lenders panel to deal with both the sale and purchase.
Our clients now own the property in Stockport and by fixing the mortgage rate clients will know what their mortgage payments are for the next three years.
Also by fixing their mortgage rate for three years it will mean that when Manchester Mortgages contact the clients to review their mortgage the Debt Management Plan will be over three years old and as long as clients have maintained a good credit file we should be able to re-mortgage them to a mainstream lender at a competitive rate.
All 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
We are specialists in the provision of mortgage products for NHS / Doctor’s / Nurses. View our main Mortgages for Nurses section for more details and further case studies.
Manchester Mortgages is a trading name of Mortgages 4U (North West ) Limited which is authorised and regulated by the Financial Conduct Authority (FCA register number 301076).
Registered in England & Wales No. 4729252. Registered office: Suite 8 Moorfield House, 2a Moorside Road, Swinton, Manchester M27 0EW
Your home or property may be repossessed if you do not keep up repayments on your mortgage.