Complex Residential – Adverse Credit
At The Landlords Broker, we believe there’s a mortgage for every individual and every situation. Recently, we had the privilege of helping a client with complex residential needs. This client had been turned away by mainstream lenders and brokers who deemed their adverse credit history insurmountable. Here’s how we transformed their dream of homeownership into a reality.
The Challenge: Significant Adverse Credit
The client came to us with a substantial credit report showing multiple outstanding defaults. These defaults, spanning a two-year period, were a major red flag for most lenders. Additionally, the client had no prior homeownership experience, making their case even more challenging. Despite this, we were determined to help.
Understanding the Client’s Situation
Our first step was to thoroughly understand the client’s circumstances. Through detailed discussions, we discovered that the credit issues were tied to a specific period: late 2019 to 2021. This period coincided with the client starting a new business just before the pandemic hit, which severely impacted their financial stability. Recognising this as a “life blip,” we knew this wasn’t a reflection of the client’s current financial habits or future potential.
The Approach: Finding the Right Lender
Each lender has unique criteria for assessing adverse credit. Armed with our in-depth knowledge of both high street and specialist lenders, we identified a lender who would consider the client’s story. Specialist lenders with experienced underwriters often review cases on their merits, taking time to understand the reasons behind adverse credit.
We recommended this approach to the client, explaining that while the interest rate might be higher, the opportunity to purchase their first home was well within reach.
The Process: Packaging and Positioning
Understanding the importance of presentation, we carefully packaged the client’s case, highlighting:
- The Context: A pandemic-triggered financial struggle tied to the early stages of a business venture.
- The Recovery: Evidence of financial stability in recent years and a strong current income stream.
- The Plan: The client’s intent to rebuild their credit and refinance in the future.
We worked closely with the lender, addressing their questions with pre-prepared answers to ensure the application process was smooth and efficient.
The Outcome: A Mortgage Approved
Despite the initial challenges, the lender approved the client’s application. The client was overjoyed, as they not only secured a mortgage but were also able to move into their first home—a milestone they thought was unattainable.
Why This Case Stands Out
This case underscores the importance of working with a broker who truly understands both client needs and lender criteria. By taking the time to delve into the client’s story, pre-empt potential lender concerns, and position the case effectively, we delivered results where others couldn’t.
If you have been turned away by lenders or brokers, we’re here to help. At The Landlords Broker, we don’t just offer mortgages—we provide solutions tailored to your unique circumstances. Reach out to see how we can help you achieve your property goals.
The Approach: Finding the Right Lender
Each lender has unique criteria for assessing adverse credit. Armed with our in-depth knowledge of both high street and specialist lenders, we identified a lender who would consider the client’s story. Specialist lenders with experienced underwriters often review cases on their merits, taking time to understand the reasons behind adverse credit.
We recommended this approach to the client, explaining that while the interest rate might be higher, the opportunity to purchase their first home was well within reach.
The Process: Packaging and Positioning
Understanding the importance of presentation, we carefully packaged the client’s case, highlighting:
- The Context: A pandemic-triggered financial struggle tied to the early stages of a business venture.
- The Recovery: Evidence of financial stability in recent years and a strong current income stream.
- The Plan: The client’s intent to rebuild their credit and refinance in the future.
We worked closely with the lender, addressing their questions with pre-prepared answers to ensure the application process was smooth and efficient.
The Outcome: A Mortgage Approved
Despite the initial challenges, the lender approved the client’s application. The client was overjoyed, as they not only secured a mortgage but were also able to move into their first home—a milestone they thought was unattainable.
Why This Case Stands Out
This case underscores the importance of working with a broker who truly understands both client needs and lender criteria. By taking the time to delve into the client’s story, pre-empt potential lender concerns, and position the case effectively, we delivered results where others couldn’t.
If you have been turned away by lenders or brokers, we’re here to help. At The Landlords Broker, we don’t just offer mortgages—we provide solutions tailored to your unique circumstances. Reach out to see how we can help you achieve your property goals.