*Names have been changed for privacy*
Paul and Kathryn
The Scenario
Paul and Kathryn have both worked in their careers for over 30 years. Paul in finance, and Kathryn in the NHS as a mid-wife. This year, as their 3 boys are now a little older and less dependent upon them, they decided to refinance their current mortgage and raise a little extra cash to “spruce up” the house.
Both Paul and Kathryn have excellent employment records and perfect credit scores, however after 30 years employed with a high street bank, Paul had gone it alone and set up in business. Whilst the amount of money they were looking to borrow was not huge, proving the income required was a little trickier.
However, we were able to secure them a remortgage with a high street lender which not only released the additional £10,000 for home improvements, but also reduced their monthly payment to give them a little more cash month to month while Paul’s business was growing.
What we did
The first thing we did was to look for the easiest path to the desired goal. This started with the income that we COULD prove – Kathryn’s salary from the NHS. Often, when someone works in the NHS their payslips can be a little confusing as they can work various hours and are paid through differing trusts. Some work pro-ratered hours and make up additional income through what is called “bank work” or “bank shifts” which are all listed on the payslip. Once we worked out the amount of Kathryn’s income that was sustainable and useable, we then were able to find the additional amount we needed through Paul’s income. Paul is a share holder in a business and although his tax returns didn’t show the amount of income needed, we were able to demonstrate his ability to afford the loan by using his Ltd company accounts and his share of the net profit.
We ran all this through the recommended lenders calculators before even suggesting to the customer we had a solution. It’s important to always manage expectations.
Once we were happy, and the clients were happy, we applied to the new lender. The valuation was free and was completed electronically within about an hour. The full mortgage offer came out 3 days later, and then it was over to the solicitors. A solicitor still needs to be involved in a remortgage but we managed to get this cost covered by the bank. The old mortgage was repaid, and the additional £10,000 they wanted to borrow was transferred to their account a couple of days later.
Altogether, from first contact to having the money in their bank 8 working days.
If you think a remortgage could help you, either by lowering your monthly payments, consolidating some debts or raising capital to improve and extend your home, then speak to us today. You can call 0345 094 1567 to click here to speak to one of our advisers.