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First Time Buyer
This case study looks at a First Time Buyer who has not yet started work.
A client contacted Balanced who had an offer accepted on a new build property they wanted to purchase in March. Applicant 1 was employed with a long work history. Applicant 2 had just completed training and had a fixed term contract job offer to start in the September, with a temporary position due to start in 2 months.
Main lender concern with the case
Both applicants full time income was required to meet affordability requirements for the level of borrowing required
Applicant 2’s job was an initial 12-month contract to be reviewed at the end of the 12 months and a subsequent permanent position subject to satisfactory fixed term contract
Applicant 2’s interim position was a short-term role
Deposit from mixed sources including own savings, HTB ISA & Family Gift
Applicant 1 had a minor adverse error recorded on credit file
Each of the points above created a complex scenario, most importantly the income from the position starting in the September was required for a successful affordability assessment from the lender for affordability. Many lenders would not consider this income as the position either had not started or was starting more than 3 months in the future. Other lenders would not disregard the adverse credit error until it was removed from the credit file, giving us very limited options.
Balanced Financial Services identified a lender who would be able to flex their underwriting requirements and consider this as an exception through manual underwriting. We worked closely with the lenders Business Development Manager to ensure the case was packaged and presented to the underwriter with a full and detailed explanation of affordability in the short and longer term, evidence that the credit report was showing adverse in error and we were able to provide the lender enough comfort that they could lend on standard terms.
The applicants were able to secure a very competitive high street rate for their mortgage because we were able to work with the lender outside of their normal criteria rules.
This was possible due to Balanced Financial Services excellent relationship with lender Business Development Managers and our open and honest and up front approach with underwriters.