Complex Mortgages

What do you mean by complex needs or complex mortgages?

It could be anything that you think may stop you from securing a mortgage. Examples include but are not limited to:

• Bad credit history – you may have an adverse credit history including defaults, CCJs, missed payments or arrears, Debt Management Plans, IVAs, Debt Relief Orders, Repossessions or Bankruptcy.
• Low credit score 
• Benefit income including Universal Credit, PIP, Child Benefit, foster income
• Self–employment – perhaps you have less than 3 years of accounts or your business was impacted by Covid-19
• Limited company directors
• Income from agency work or zero-hour contracts
• No deposit from own savings
• Multiple income sources – maybe you have a second job or income from a Buy-to-Let or Trust
• Property – non-standard construction, Japanese Knotweed, mineshaft locations, short–term leasehold, flat roofs, cladding
• Age – you may be approaching retirement or already retired
• More than 2 applicants want to be on the mortgage
• Deposits from outside the UK
• Income paid in a foreign currency
• Non-UK residency within the last 3 years – perhaps you have been travelling the world for a period of time or you have lived and worked abroad, meaning you have not resided in the UK for the last 3 years.
• Non-UK nationals
• Buying a property via auction or corporate sales
• Guarantors
• Buying your council/housing association home via the Right to Buy Scheme or Right to Acquire scheme

Why is it important to seek advice if your circumstances do not fit the mould?

An experienced mortgage broker has knowledge and understanding of mortgage lenders’ criteria. This is important because not all mortgage lenders have the same criteria meaning that your personal circumstances may not fit every lender. They also have access to more than one mortgage lender. Therefore a mortgage broker can save you time and disappointment by ensuring you are matched to the most suitable mortgage lender based on your circumstances. 

We would always recommend you speak to a whole of market mortgage broker like The Mortgage Pride at the earliest opportunity.

I’ve been declined by my bank – can you still help?

Potentially yes, especially if you completed your own mortgage application directly with the bank. It is likely that your mortgage application was declined as you did not meet their lending criteria. Our comprehensive mortgage planning service will help identify the reasons why your mortgage application was declined and identify suitable mortgage lenders who can potentially help. The Mortgage Pride have access to over 100 mortgage lenders and are expert in helping clients who have previously had mortgage applications declined, secure the right mortgage for their needs and circumstances.

I’ve been told ‘No’ by other mortgage brokers so why would the answer be any different?

Here are some real-life examples of how we have helped our clients…(names have been changed to protect their identities).

Real Life Case Study 1 – I have been declined by my high street bank but I don’t know why

Jane and Mark were first time buyers who had applied online for a mortgage directly with their high street bank after having their offer accepted on their dream first home. All was going well, they had passed the agreement in principle and their full mortgage application had been successfully submitted and the underwriter requested their payslips and bank statements. 

After reviewing their documents, the underwriter declined their mortgage application but they were confused as they had passed the credit checks. They contacted The Mortgage Pride stressed and upset as they thought they were going to lose their purchase. 

From the initial telephone conversation and reviewing Jane and Mark’s key documents, Steven quickly identified that Jane was actually employed on a zero-hour contract, not a permanent contract and as a result, her income varied on her weekly payslips. He was able to explain to Jane that  this meant they fell outside the criteria for the high street bank they had applied to. 

He efficiently identified the income that could be used for Jane using a number of previous payslips and P60’s, he then identified a mortgage lender suitable for Jane and Mark. The full mortgage application was submitted by Steven and the mortgage offer was issued meaning Jane and Mark could continue with the purchase of their first dream property.  

Real Life Case Study 2 – Buying our first family home when one applicant has bad credit and benefit income

Jack and Sue were desperate to get on the property ladder after they had outgrown their rented family home. They had been saving for a deposit but contacted The Mortgage Pride for support in taking the next steps to buying their first home. 

During the initial telephone conversation, Laura had identified that Sue was a stay-at-home mum as she cared for her youngest child who had additional needs and therefore was in receipt of benefits as well as Jack earning a full-time salary. However, it was only whilst reviewing their key documents, which included copies of their credit reports, Laura identified that Sue had recently missed payments within the last 6 months on a catalogue account. 

Jack and Sue had a 10% deposit but Sue’s credit history blip was affecting their mortgage options. This was because the majority of lenders were requiring an increased deposit of 15% due to the recency and number of missed payments. This meant that Jack and Sue either had to postpone their homebuying plans or we needed to find an alternative solution.

Using her extensive knowledge, Laura identified a lender that was happy to accept a mortgage application in Jack’s sole name only even though Sue was also going to live in the property, allow them to use a 10% deposit and borrow the amount needed to purchase a property of a suitable size for them and their children. This meant they did not need to delay their plans to move their family to a larger, more suitable property whilst getting onto the property ladder.  

Real Life Case Study 3 – Buying our current Council home using Right to Buy when my wife has previously been in a Debt Relief Order.

Married couple, Sarah and Steve wanted to buy their current home from the Council, using the Right to Buy scheme but didn’t know if it was possible due to a previous Debt Relief Order that Sarah had previously entered into. 

After a conversation with Laura, and reviewing the couples key documents, she identified:

• The Right to Buy paperwork (Section 125 document) was in Sarah’s name only
• Sarah had been discharged from her debt relief order within the last 12 months
• The couple received benefit income including child benefit, Personal Independence Payment (PIP) and maintenance income for children from a previous relationship
• The couple did not have any deposit from their own savings
• Steve was the main income earner but was a newly qualified teacher. 

Due to the recency of the Debt Relief Order and other bad credit on Sarah’s credit file, there wasn’t a suitable mortgage lender who offered Right to Buy mortgages. The majority of mortgage lenders who offered Right to Buy mortgages, were either not happy to lend a mortgage in Steve’s name only as the couple were married and both would be living in the property after completion or, required the couple to find a further 5% deposit on top of the Council Right to Buy discount. 

After fully understanding Sarah and Steve’s circumstances and utilising Laura’s extensive knowledge and experience, she identified a mortgage lender who could:

• Lend the couple enough using Steve’s income only
• Offer the mortgage in Steve’s name only even though they were married
• Use the Right to Buy Council discount as their deposit without the clients needing to put down any further deposit

Real-Life Case Study 4 – Buying a property with a mine shaft in close proximity

Sometimes it is not your personal circumstances that cause problems securing a mortgage, sometimes it is the property itself. 

Matthew and Stacey contacted us after having their previous mortgage application declined due to solicitors identifying (as part of their searches) that there was a mine shaft in next door’s garden and the broker they were using had said they could not secure a mortgage for them to continue with the purchase. In addition, Stacey was self-employed and her previous year’s income had been affected by Covid lockdowns.

Steven asked the couple to provide him with a copy of the mining interpretative report so he could speak to mortgage lenders upfront to understand if it could be something they would be willing to lend on. With access to over 100 different lenders, this was no small task but he managed to identify a handful of lenders who advised him that it could be something they could consider. 

Due to the time constraints of the property purchase and working closely with the clients and handful of mortgage lenders who had advised it could potentially be considered, Steven submitted 3 mortgage applications on the same day (not something we encourage without careful consideration and management) as it came down to the surveyor’s comments at the point of a mortgage valuation. 

In the end, 2 out of the 3 mortgage lenders subsequently issued mortgage offers for the clients meaning they were able to select the one offering the most cost-effective mortgage deal. The clients could not believe it when Steven gave them the good news and they are now busy renovating their new home. 

What do the 4 real-life complex mortgages case studies above have in common?

They all used trusted mortgage brokers who are specialists in helping clients in complex situations secure mortgages. With over 20 years’ combined experience, The Mortgage Pride are experts in matching clients to the right mortgage lender for your bespoke needs and complex mortgage circumstances. With access to over 100 mortgage lenders, you can be confident we leave no stone unturned and our personalised complex mortgage planning service is proven to ensure your mortgage application results in a mortgage offer* whatever your circumstances.