Personal Profile

Outside of the work environment I enjoy trips away for a wander and light refreshments.  I also have a passion for horse racing.  I have a few shares in a few horses which sounds glamorous, but truth be known, it works out to a few hairs!

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History is another passion of mine and I hope to complete my family tree when  not busy writing mortgages.

Case Study

Complex Buy to let Remortgage

Property owned by Son and parents equally. Son resided in property and had a lodger.  Mortgage was originally taken for only 5 years on an interest only basis.  The end of the full term had been reached and the mortgage was due to be repaid in full (the full mortgage balance in excess of £100k) within 2 months of the applicants contacting Balanced Financial Services.

An application had been made by another broker firm, but the application was for a Buy to Let Mortgage whilst the occupying owner remained in residence and took so long it was still in progress when this person had gone to work in another country.  The previous broker had stopped communication with the applicants and the time for the full loan was drawing very, very near.  Furthermore, a Buy to Let application had been submitted in the sole name of the owner who had now left the country for work on a long term basis, to a lender who do not allow mortgages for people not currently resident in the UK.

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Balanced Financial Services were quickly aware that some ‘outside the box’ thinking would be required. 

Main Difficulties presented:

• Property currently owned on a residential owner occupier basis by 1 occupier (who had left the country at the time of approaching BFS) & 2 non-occupying owners.

• Full mortgage term was nearing expiration and the full balance needed to be secured quickly.

• The occupying owner had left the country to work in a country the other side of the world (non-EU).

• The Lodger remained in the subject property on a lodger’s agreement not an Assured Shorthold Tenancy agreement.

• Neither applicant were considered experienced Landlords due to the tenancy being a lodger agreement historically, not a formal tenant.

• The property did not at the time have the appropriate letting requirements (applicable to AST’s, but not lodgers) stipulated by Buy to Let mortgage Lenders.

• Rental income received from the property was well below market value for the area and insufficient for most lenders to consider the property ‘self-funding’.

• Debt to income ratio was a concern for many lenders.

• There was a very tight time frame due to the full term ending imminently.

Balanced provided 5 possible solutions with details of potential issues/risks related to each potential solution to the predicament.  This included mortgage options for the remaining UK residents & Ex-Pat mortgages, and the consideration of selling the property and repaying the loan, as we believe it is important to consider all options available so that a fully informed decision on the most suitable way to proceed could be made.

A decision was made on the preferred way to proceed, and Paul J managed to secure a new mortgage for the owners remaining in the UK effecting a Transfer of equity – 1 at the same time as securing an official Buy to Let mortgage, raising a small additional amount required to bring the property to formal letting standards. Paul also assisted the applicants with general Buy to Let guidance including EPC & EICR guidance and the need for a proper AST for the tenant to ensure that the legal side was able to progress post mortgage offer.