Subbie Tip #16 – Why It’s Important To Get The Right Lender
This case study shows how important it is to choose the right lender when it comes to getting the right mortgage offer.
A subcontracting electrician was recommended to meet with me recently following a disappointing meeting with another mortgage broker. My client had an offer on his own home and an offer from him had been accepted on the property he wanted to purchase but when he met with his first broker, he was told his earnings were not enough to secure the size of mortgage he required.
His first broker reviewed his income, took the average over the previous 13 weeks and annualised his figure – it’s an equation that many brokers use so I wasn’t surprised by it. The problem was that my client had taken two weeks off over Christmas which immediately reduces the average income figure. My client also had a second CIS income (from weekend work with another construction team) but broker number one hadn’t taken this income into account. The income figure resulting from broker number one’s calculations was approximately £40,000 – nowhere near enough to go ahead with his chosen purchase.
It goes without saying a different approach was needed; here’s what I did.
After reviewing my client’s income over the past twelve months, I placed his mortgage with a lender that took account of his entire income; combining both his CIS jobs and over the full twelve-month period. As a result, the gross income now factored for mortgage affordability was £83,000 – a very different outcome and one that enabled my client to move forward with his house sale and purchase.
If you’d like me to try to put you in a better financial position to buy your next home, don’t hesitate to get in touch. You can call me on 08000 306705 or drop me an email to: firstname.lastname@example.org
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE