News & Articles

Let to Buy Mortgages
Let to Buy - BTL and onward residential purchase

Tom and Jane are homeowners and have lived in the same property for 10 years. The house was now too small for their growing family and they wanted to move to a new larger house.

They had built up a significant amount of equity in the property and ideally, they wanted to keep their current residential property and let it out as a long term investment. However, they did not think it would be possible as they wanted to use the equity towards the new purchase. Following a conversation with one of our advisors, the couples income sources and expenditure were reviewed and a mortgage lender was sourced. Tom and Jane were able to keep their existing property and purchase their dream home.

Please note, that the case study ...

more information
residential property
Home mover client looking purchase a residential property for £1.35m

Applicants were self-employed directors of a care home and had only been trading for 2-years.

They made a small profit during the first year, but this was due to not having to pay any corporation tax for that year.

Second year profits were considerably higher and in order to maximise the borrowing, a lender that would use the latest years profits + directors salary + latest years profit from land and property was required.

Mainstream high street lenders had declined the application at a time when market conditions were uncertain due to Covid-19.  The lenders stance was that the first year profit was only there because no tax had been paid, hence they decided to decline the case.

At a time when no other lender was gettin...

more information
Concessionary purchase
Joint Borrower, Sole Proprietor – Buy to Let

Sara lives with her parents and wanted to get onto the property ladder and purchase a property for investment purpose.

She had saved up a sizeable deposit, however, as she was not a residential homeowner and had a lower income, she did not think it was possible to do this.

Sara approached one of our Advisors, to get some advice on how she could proceed with a purchase of an investment property.

As her parents are homeowners, our Advisor suggested that they go on the mortgage with her as joint borrowers, sole proprietor. This means that her parents can provide the status of ‘homeowner’ required for the application, but they would not go on the mortgage deeds and therefore the property would only be Sara’s name. The lender w...

more information
We didn’t review our policy and it was too late

When my wife Sheena and I got married 25 years ago, we decided to take out a joint life, first death policy. After spending so much money on our home, we wanted the cheapest option available to us.

Fast forward 25 years and so much in my life has changed. I still live in the family home, now with my two teenage sons and we have a dog, but Sheena sadly passed away earlier this year.

Now that Sheena has passed away, the one policy we had had paid out, so I no longer have a cover.

At the time of taking out the policy, we decided not to opt for RPI (Retail Price Index). I did not feel at the time, that our policy needed to be in line with inflation and after taking this option off, we forgot about it. As a result, the  cover we had...

more information
Don't leave it too late!

We were contacted by Matthew & Joanna to review their mortgage. Matt works as a cab driver and Jo works in a care home.

Having a mortgage, working and being parents, they both understood the reasons why they needed to take out Life insurance. The adviser who helped with the mortgage, also provided quotes at the time of the mortgage application. They decided they did not want to take this up at this time.

A few years later when we reviewed their mortgage, we asked about their life cover again. Life cover had quickly fallen off their to-do list as there were always other priorities, they decided to meet with the adviser again and go through their options.

The second discussion was again, around their life insurance needs and p...

more information
Do you have Income Protection?

For so much of the world's population, 2020 has been a year full of unprecedented challenges. This has raised questions about our mental as well as physical well being. We are seeing more and more news stories about how people's mental health is being affected by this global pandemic. This has been a time when the words "you can't predict the future" comes to the forefront.

Post-traumatic stress disorder, anxiety, depression, obsessive-compulsive disorder, to name a few mental conditions that have been highlighted in the media.

Just for a moment, think about you and how you personally are affected. Are you constantly feeling anxious or depressed and f...

more information
How do I protect my mortgage?

Do you have a mortgage? Is it protected so that you or your family do not lose your home if you are diagnosed with a terminal illness or when you die?

So many people in the UK, have mortgages with no protection in place. If you are one of these people; have you thought about what would happen to you and your family, if you died and the family were left homeless? If you have a joint mortgage, could your partner keep up the payments if you were to die first?

Case Study - Sasha and Brian:

Sasha and Brian had 2 children under the age of 10. They recently purchased their family home, which they had saved so long for. Both work...

more information
What happens to your loved ones when you die?

So many people are being diagnosed with a life-changing illness such as cancer, heart attack, stroke or you may have an accident where you may not be able to go back to the job you are doing. Would you lose your home as a result? Do you have anyone you could turn to financially? The most common types of insurances we may take out in our lifetime:

Car insurance Home insurance Contents insurance Mobile phone insurance Travel Insurance

 

What about insuring you, your ability and capacity and earn, wha...

more information
Income Protection - Statistics & Case Studies

Have you thought about Income Protection?

We are surrounded by stories of people having cancer, heart attacks, strokes, car accidents, mental health breakdowns, to name a few major health situations which could happen to any of us at any time.

If you are working, what would happen to your monthly income if you suddenly lost your ability to work?

Would you be able to manage without your monthly income?

If you could not pay your mortgage, how long before you lose your home? How would you pay the food bills and which of your home comforts would you lose first? Can you and your family cope with this financial loss?

Income Protection will pay you a monthly,...

more information
Case Study: Refinance of a Bridging Loan

Refinance of a Bridging loan on a Buy to Let property which was purchased in a Ltd Company via auction. Clients bridging rate was 8.4% per annum and they wanted to exit the bridge on to a Term Loan.

Original purchase price was £480,000 and after works it was valued at £750,000.

Problems

One of the two Directors has a CCJ.  The clients were Non Owner Occupiers and have no other Buy to Let properties.

Property had not yet been rented as it had undergone extensive refurbishment work to add floor size and full modernisation.

The clients previous broker had made numerous mortgage exit applications on their behalf all of which were declined.

Solution

We used a lender (which had previously decline...

more information