Mortgage Affordability

Has a mortgage lender declined your mortgage application based on affordability? 

Having spent a number of years renting, our client contacted us because they wanted to purchase a property thanks to a positive change in their circumstances. The family wanted to find a property that would suit them and their circumstances while remaining affordable. Having discussed various options with them, our advisor, Iain Belcher, recommended a mortgage with a split repayment type where over half of the mortgage would be on a capital repayment basis and the remainder on Interest Only. This suited their budget as it would reduce the monthly mortgage costs initially before one of them returned to work in the future and therefore their household income would then be higher. The solution he presented would also allow them to make over payments to reduce the mortgage amount if they had disposable income. 

The couple had looked at trying to purchase a property previously and thought that they would be able to borrow a similar amount even though their current income was less. 

After exploring various lenders from across the market, they applied for a mortgage with the lender that would, on the face of it, be willing to lend them the required amount. However, at underwriting stage they were declined as the mortgage was subsequently considered unaffordable in the eyes of the lender. 

Undeterred, Iain Belcher, spoke directly to an underwriter about the case with an alternative lender, running through their financial circumstances in detail and answering initial queries from the underwriter. The result weas that the couple were approved for the mortgage amount they needed to purchase their new home.

We are pleased to say that the family are currently working towards exchange and completion on a property they love. 

Resolve Financial Solutions explore all of your options with you in order to find the perfect solution to suit your needs. Get in touch today to discuss your requirements.

*Your home may be repossessed if you do not keep up repayment on your mortgage.

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