This is another success story which seems a little bit on the light side, but that is probably because I am used to writing about examples which include Bankruptcies, CCJs, Debt Management plans and the like, not a plain old no credit issues Mortgage application.
But because of the world we are in at the minute, 90% Mortgages are actually a little bit on the scarce side, added to that, getting 4.5x income with some monthly commitments in the background is trickier now than it has been in the last 10 years.
The applicant is a first time buyer, he has a couple of bits on finance (nothing more than most people) but the amount needed was a little above what we could get – especially with the limited options on 90% Mortgage products available.
Thankfully, we have access to some products only available to a limited number of Mortgage Brokers. One of the plus points with this lender is that they will assess affordability based on your actual spend. That means rather than using Office of National Statistics (ONS) figures that most lenders use, they will go through bank statements manually and add everything up and this can work in your favour if you spend less than the national average.
As this customer spends less on some items than ONS figures suggest, it meant we could get a higher loan amount than we could with other lenders. At the moment due to the limited number of lender offering 90% Mortgages, this came in very useful as we would not have been able to obtain the amount needed if it were not for this lender.
Whilst this example is a bit on the light side, having access to smaller manual lenders can come into its own at times like these.
As we are used to dealing with these types of smaller manual lenders for our customers with bad credit, they are also available for other quirks that may pop up, such as tight on affordability, self employed etc.
If you are struggling to get a 90% mortgage due to failing credit score or affordability, please do get in touch. We can have a chat and see what options are available to you.