The clients: A married couple, one of whom runs their own business, the other being a human research manager at a large organisation. They asked for help from Dan Farley (our mortgage advisor in Redditch based out of the offices of AP Morgan Estate Agents in Redditch) – they wanted to purchase their dream family home in an affluent area just outside of Redditch with good schools that was still close to family.
The purchase would mean a large increase in their current mortgage payments, but they felt they would be able to afford it as they had recently considerably reduced their outgoings.
The property: The home they had their hearts set on was a large detached house with 5 bedrooms and three reception rooms, that required some work doing in order to fully meet their needs. The couple believed that the work they wished to carry out on the property would significantly increase the value of the property and would be a good investment in order to provide future inheritance for their children.
The finance: The couple had been advised previously by their own accountant that a director’s loan from the business would be able to be used as a large part of the deposit, whilst the rest would come from the equity currently tied up in their current home. This all sounds fairly simple, but due to some difficulties, this also meant they wouldn’t be able to get a mortgage with one of the high street banks.
The application process: Working with the customers, we approached a lender that caters to self-employed people and business operators. This means that the lender had a much better understanding of our customers’ needs, and due to their familiarity with business loans, does not see some of the ensuring circumstances to be a barrier to borrowing for their mortgage. Once we explained to the lender the couple’s plans, their change in financial circumstances, and more, the lender was more than happy with our explanation and was able to issue a formal mortgage offer, much to the delight of both our customers and Dan.