The Client:
There are two applicants. The main applicant has three sources of income. One is employed, one is self-employed and one has property income. The client also has a fair amount of unsecured finance and he doesn’t want it to impact his affordability. He will be paying it off before completion.
The Scenario:
The clients do not own their own residential property. They are living with family, however the gentleman owns 3 buy-to-lets in his personal name and has 27 buy-to-lets in a limited company. They want to purchase a residential. They are not first-time buyers, so this is not an issue, however, we do need to borrow as much as possible.
The gentleman’s employed income is simple – he has a second self-employed source of income, but it’s important to make sure you use a lender that takes 100% incomes from both. The most interesting aspect of this is the buy-to-let income – some lenders will take in to account all the mortgages against a client’s name which will seriously adversely affect affordability. As he also will be consolidating debts before completion from his own sources to maximise the loan amount, but it’s important to use a lender that will discount it from the calculation. Not all lenders do and it impacts significantly the loan amount possible.
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The Solution:
Being a true whole-of-market mortgage Broker, we have the knowledge to know that some lenders will discount debts that will be consolidated before completion of the mortgage, from own funds or using the money being raised. We also know who will allow someone to have a large portfolio and accept multiple sources of income without using the mortgages on the buy to lets against them.
Through our experience and knowledge, it helps us know who will take 100% of multiple income types to really squeeze the most out of the loan. This is always advantageous to clients.
Summary:
It is possible to get lending on extremely complicated setups and situations that would seen as undesirable to most lenders.
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