Customer Success Story: Saving a home and £100
Almost 2 years after buying a property together, two brothers faced a problem.
Their fixed-rate mortgage deal was coming to an end and they would soon be forced to pay their mortgage lender's Standard Variable Rate, meaning their monthly payments would increase significantly.
Not only that, they had decided they now wanted to separate from their joint mortgage and own their own homes.
Recognising they needed help from an expert, they called the Mortgage Advisor that helped them buy their home two years ago.
The solution to their problem was to remortgage the property, take one of them off of the mortgage and leave one brother living in the original home with full responsibility for the mortgage.
In order to achieve this outcome, the Mortgage Advisor needed to prove to a lender that the brother remaining in the home could afford the mortgage on his own, which is calculated by a lender based on the level his annual income.
After talking to a number of different lenders, the Mortgage Advisor found that nobody was willing to offer the full mortgage to one brother alone, due to his annual income being too low.
The Mortgage Advisor contacted the brothers and advised them that the only way to separate would be to sell the house.
Naturally, the brother who was to remain in the property was devastated to learn that his only option would be to lose his home.
Desperate to find an alternative solution, he got in touch with one of our Mortgage Advisors to double check what his original broker had told him.
After a discussion with the client and an in-depth look at his finances, we found that whilst his annual salary wouldn't be enough to support the full mortgage alone, he had additional income from renting out a room to the tune of almost £8000 per year.
With this information, we were able to find a lender that would allow the additional income to impact his affordability calculation, which meant that he was able to achieve the full mortgage amount and separate from his brother without having to lose his home.
As an added bonus, the new mortgage payment we got him was £100 less per month than his existing deal.
Now he can go on living in his existing home and save money in the process.
Getting independent advice is important when getting a mortgage, but getting a good quality adviser and service is crucial.