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Commercial Purchase Mortgage – Case Study

The Client
Our client’s business is a limited company which has been trading as a mini-supermarket and established in the area for more than 15 years. The business has been extremely profitable and has been growing year on year and their premises has been on a long lease.

The Scenario

The landlord was looking to sell the premises and so it was the perfect time for our client to swoop in and look at purchasing their trading premises. The client was even able to take advantage of the flat upstairs and the car park at the back which they will now use for their customers.  

Discover our  Commercial Mortgage Broker services

The Solution

We used the business accounts for the last 3 years to evidence how the business has been running extremely well and has been constantly making profit each year. Our client’s had always been up to date with their rent payments and even better, the mortgage payments for the commercial unit can be supported from the rental income being generated from the flat upstairs.

There can be scenarios where the lenders may not even consider the income from the commercial part if the mortgage fits using the rental income from the residential element. The reason sometimes is due to ease of letting out a residential premises due to market demand. Having access to multiple lenders in this space and working with lenders that look at “common sense lending” has been beneficial for our client’s enquiries.

Summary

A lot of lenders backed out of the Commercial and Semi-commercial mortgage market during the pandemic; however, our expertise and contacts have meant that we have been able to offer these products to our clients constantly even during the pandemic. The lenders are again starting to embrace the strength of the market going forward and can take a sensible approach to repayment of their mortgage payments.

If you have any questions about Commercial and Semi-Commercial Mortgages and would like to receive a free quotation or advice, please call 03303 112 646 today. You can also fill in this short online form to get started. A member of our Specialist Mortgage Team will get back to you straight away.

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Expat First Time Buyer with Adverse Credit – Case Study

The Client
The clients are both Expats currently based in the UAE, working full time and looking to purchase their first home back in the UK in which they would reside in for 1/3 of the Year.

The Scenario
Following our free assessment of their current personal and financial circumstances, it was made clear one of the applicants had some adverse credit on multiple credit accounts within the last 6 years. This added an additional layer of complexity that our whole of market experienced brokers would need to find a solution for. Combining this with their Expat status meant that the number of lending options were limited. However, as a result of the second applicant having a perfect clean credit history it helped the situation, as well as the clients’ having a healthy 20% deposit.

Contact us today to discuss Expat Mortgages and how we can assist you.

The Solution
Having discussed the case directly with multiple Expat Residential Mortgage Lenders, two Lenders came back with the best options for the client. One of the Lenders advised however that an application / offer would be subject to the individual underwriter’s own discretion and therefore it presented a risk of potential decline and delay for our clients.

Therefore, the second lender was chosen due to both the clients fitting well on their standard criteria. A Decision in Principle (DIP) was secured within 24 hours and two weeks later our clients had an offer accepted on their dream first home; which we were able to secure a highly competitive interest rate with an 80% Loan to Value (LTV).

Discover our Commercial Mortgage Broker services.

Summary
Clients with adverse credit usually believe that it will be difficult to obtain a mortgage, however working with a Specialist Expat Mortgage Broker, our Mortgage Advisers have many years of experience finding solutions for complex scenarios including Expats & Foreign Nationals, as well as those with adverse credit. Our clients are regularly surprised at how competitive the mortgage interest rates we are able to secure them are.

Therefore, if you are an Expat or Foreign National with or without a clean credit history, call our Mortgage Adviser Team today on 03303 112 646 to find your dream home today. Alternatively please fill in this short online form and a member of the team will call you right back.

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Semi-Commercial Remortgage off a Bridge – Case Study

The Client
Client is the owner of a Semi-Commercial Property with a Hair Salon on the ground floor along with a first floor flat. The client had obtained planning permission to build another 2-bed flat at the back, which they had recently completed using Bridging Finance as a short-term funding solution.

Following the pandemic, many Commercial Lenders withdrew from the commercial market due to uncertainties within the sector and lack of investor confidence.

The Scenario
Following the completion of the building works to add the rear flat, the client needed an exit off-the-bridge and wished to secure a new mortgage to pay off the Bridge whilst also having a long-term strategy with lower repayments. The Semi Commercial Property will now be generating rental income from the 2 flats as well as the additional rental income generated from the hairdressers.

Discover our Commercial Finance Broker services.

The Solution
Looking at the Semi-Commercial Mortgage option, we were able to illustrate to the Lender that the mortgage could be repaid using the rental income solely from the property. Although the client didn’t have substantial personal income, the Lender was confident with purely the rental income being generated from the security property.

Summary
A lot of lenders backed out of the Commercial and Semi-commercial mortgage market during the Covid pandemic; however, using our expertise and contacts have meant that we have been able to continue to offer these products to our clients constantly even during the pandemic. Commercial Lenders are again starting to embrace the strength of the market going forward and invariably will consider a sensible approach to repayment of their mortgage payments.

If you have any questions about Commercial and Semi-Commercial Mortgages or Bridging Finance and would like to receive a free quotation or advice, please call us on 03303 112 646 today. You can also fill in this short online form to get started and an Advisor from our Commercial Mortgage Team will get back to you straight away.

Discover our Bridging Finance Broker services.

BTL mortgage availability Almost half One in 10 North West Stamp Duty holiday Buy-to-let 5-year fixed BTL mortgages buy to let investment areas UK property investment locations buy-to-let lenders BTL properties buy-to-let landlords Number of UK buy-to-let landlords buy-to-let limited companies
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Expat Buy to Let – Case Study

The Client
The Client is an Expat and Teacher who has been working in Thailand for more than 6 years for a company based in the UK. Their husband works for a major holiday booking company and has been working with them for more than 5 years.

After an initial conversation, looking at their criteria and based on their country of residence, it was going to be challenging since some lenders have a restrictive list of countries that they lend to.

Contact us today to discuss Expat Mortgages and how we can assist you.

The Scenario
The clients had been saving from their income and had saved a healthy deposit and had found a property that was best suited for the rental returns they were looking to achieve. The clients were putting down 30% deposit and needed a Specialist Mortgage Adviser who was experienced in dealing with Expat Mortgages.

The Solution
Initially we considered looking at a certain High Street Lender who lend to Expats through their international business arm, however, due to their restrictive list, we had to look at our wider whole of market specialist Lenders. Not only was the selected Lender able to provide the client with an Expat mortgage, but the whole process was also quick and seamless, and we were able to lock in the product for the client the same day. In this current volatile market, this is essential as the interest rates for lenders have been changing frequently. Any delays in the process could mean that the clients could end up with worse deal, since the interest rates are mostly on an upward trajectory at the moment.

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Summary
A lot of international Lenders are keen to lend to Expat clients, however, many restrict their market depending on the countries they support. The speed and expertise of service in this market that we can provide could mean that we are able to source the best products for our client before there is any active movement in the market.

If you have any questions about Foreign National or Expat Residential or Buy to Let Mortgages and would like to receive a free quotation or advice, please call 03303 112 646 today. You can also fill in this short online form to get started. A member of our Specialist Expat Mortgage Team will get back to you straight away.

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Semi Retired Residential Mortgage – Case Study

The Client
Client was an ex-army veteran who was semi-retired, but still working with a big chain supermarket. Their spouse was a housewife in the process of receiving a pension.

After an initial conversation and affordability calculation, our client was satisfied that they could get a new mortgage, despite their ages and with enthusiasm began their property search.

Discover our Residential Mortgage Broker services.

The Scenario
They wished to sell their existing home to move to a more expensive property and therefore needed to arrange a mortgage for their new property. As they owned their existing home outright without a mortgage – the property needed to be placed on the market first. As this was back in February 2022 when the market was at a seller’s advantage, they found a buyer just in a few short weeks.

“The whole process was daunting, and we did not know if we can even get a mortgage at our age.”

After long and careful consideration they decided to move to Wales to be closer to the beach. An offer was made on a property, and they were ready to proceed with the mortgage application.

Discover our Mortgage Broker services

The Solution
Initially we considered looking at a Retirement Interest Only mortgage, however most lenders would not take the earned income into account and the application would fail affordability with the retirement income only. Furthermore, the clients would have preferred a repayment option just for peace of mind.

Most High Street or even smaller specialist lenders had a max age at the end of the mortgage term / using employed income criteria which normally is 70. This meant that the monthly payments would have been too high for the clients liking and budget. However, we approached a senior underwriter at at a High Street Lender who accepted the mortgage application using the client’s earned income up to 75 years old, which would make the mortgage affordable and allow the rest of the term to fit on the joint retirement income alone.

This approach meant the client could take a longer-term mortgage for affordability and stick to a repayment option as preferred.

Summary
Reaching a certain age doesn’t necessarily mean that you unable to get a new mortgage. It can put off a lot of the High Street lenders, however, with our experience and access to specialist lenders, we are able to find options available to suit the clients’ exact requirements.

If you have any questions about Semi-Retired Residential or Buy to Let Mortgages and would like to receive a free quotation or advice, please call 03303 112 646 today. You can also fill in this short online form to get started. A member of our Specialist Residential Mortgage will get back to you straight away.

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Invoice Finance / Factoring – Case Study

The Client:

The client is a Freight Forwarder business and has traded as a Limited Company for the past 7 years, with a healthy turnover of circa £600,000 per annum.

The Scenario:

The client has had consistent cash flow issues due to their providing standard payment terms of 60 days to their customers for invoices, in addition to experiencing occasional late payments. Conversely the operating costs of the business, being predominantly wages, needed to be paid either weekly or monthly, therefore presenting an overall cashflow issue.

Contact us today to discuss Business Loans and how we can assist you..

The Solution:

The client was initially presented with several Business Loan options we managed to secure for them, although they ideally wanted a greater degree of flexibility in their borrowing. We therefore searched the whole market for an Invoice Finance facility for them as this was deemed the most suitable solution for their needs.

We managed to secure a £100,000 Invoice Finance Facility which will enable them to be paid advances on their outstanding invoices up to the facility limit over the coming year. The facility works with the lender deducting a set percentage as their fee, once the invoice has been paid by the client’s customers.
This solution and Invoice Finance Facility will greatly aid the client’s cashflow when they need it most and it won’t be restricted by any rigid monthly repayment terms.

Summary:

Invoice Finance / Factoring is designed to increase a company’s cashflow and fund growth. It is a relatively quick method for accessing business finance against a company’s account receivables.
Whilst personal and business credit may prevent access to Business Loans in some cases, Invoice Factoring Lenders are more focussed on the ability of a business’s clients payment history.
The facilities put in place are invariably Unsecured options which don’t require security over and above the invoices themselves, whilst also removing the time-consuming headache of chasing payments, since these now become the responsibility of the lending partner.

If you have any questions about Invoice Finance &/or want to receive a free quotation or advice, please call 03303 112 646 today. You can also fill in this short online form to get started. Our team of Invoice Finance Experts will get back to you straight away.

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Bridge to Let – Case Study

The Client:
The clients are UK portfolio Landlords who already own multiple investment properties in Northeast England, as well as their own residential property and were in the process of purchasing a leasehold block of 8 flats on one title for £215,000 via their SPV Ltd Company. They are both self-employed, with the main applicant being a builder.

The Scenario:
The clients had sufficient funds from a recent buy, refurbish, refinance property, and planned to carry out minor works to the block to increase the value and rental yield. They had an existing mortgage application underway via another broker until the chosen lender decided to pull the application because of the level of personal borrowing the clients accrued whilst carrying out ongoing refurbishment projects after 6 months. Therefore, we knew they needed to act fast in order to avoid losing the property.

Contact us today to discuss Bridging Loans and how we can assist you.

The Solution:
Due to our experience with specialist property types such as multi-unit blocks of flats as well as being a whole-of-market Broker, we knew that there were lenders available that would be able to lend on the property with a satisfactory explanation as to why there is such high personal credit.

As the clients advised they were looking to carry out some works and required as high of a loan to value as possible, I recommended an 85% LTV bridging loan which would allow them to: purchase the property, carry out the works and have the security of knowing they could refinance onto a long term mortgage with the same lender once the works were complete.

As an existing borrower of this lender, they were able to obtain a 0.25% discount on the arrangement fee. After carrying out a 2 month refurbishment project on the property, at a cost of £22,000, are now in the final stages of securing their long term buy let mortgage with the same lender at 75% of the new £320,000 value

Summary:
When trying to purchase buy to let / investment properties via a Ltd Company, lenders will look at your personal borrowing, therefore you must be mindful that your broker has checked to see whether lenders have a background debt to income ratio for the Directors.

Bridging products are available up to 85% LTV to give you the flexibility to carry out refurbishment projects without having to put down as large of a deposit as well as completing with speed.

If you have any questions about Bridging Loans &/or want to receive a free quotation, please call 03303 112 646 today. You can also fill in this short online form to get started. Our team of Bridging Loan Experts will get back to you straight away.

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Residential Remortgage & Holiday Let Purchase – Case Study

The Client:
Our client was a UK citizen who already owns one Holiday Let property as well as his own residential property and was about to complete on another Holiday Let property. The client works as a Train Driver on a good income, with both basic plus overtime pay.

The client had Bridging Finance in place against his own residential property and used the funds to buy his first Holiday Let months earlier. He was wishing to now pay off the more expensive Bridging Finance (“exit the bridge”) with a remortgage on his residential home as well as secure a new Holiday Let mortgage for the new purchase.

Contact us today to speak with a specialist Holiday Let Broker to discuss how we can assist you

The Scenario:
The client had sufficient equity in his residential property to remortgage and release sufficient equity for the deposit of the new Holiday Let property. However, before contacting us, the client had been trying for several months with other Brokers to secure the funding but had been unsuccessful. He has a high debt to income ratio and this was most likely the reason he had been struggling as he needed the equity from his residential to act as the deposit for the new Holiday Let.

The Solution:
Being a whole-of-market Broker, we have the knowledge to know that some Lenders internal credit scoring systems allow an application to be considered even where a client is highly “geared” – i.e. high debt to income ratio. So long as the credit score passes and the client have maintained their credit agreements to a satisfactory level, certain Lenders will still consider an application. In this particular instance, we were able to use a High Street Lender who accepted the client’s residential remortgage.

For the Holiday Let purchase, since the client already owned one and has a good income, we were able to secure him the best deal on the market for this, which fitted the Lender’s criteria perfectly. It was also beneficial that the client already has the onward purchase resolved as that can often hold up residential remortgages, as lenders’ wish to know the specific details etc.

Discover our Holiday Let Mortgage Broker services.

Summary:
When trying to remortgage a clients’own residential home, it can be often be difficult when the client owns multiple properties and has a high debt to income ratio. However, options do exist, especially if all existing credit agreements have been well maintained.

Key things to consider for Residential Remortgages when raising funds to buy another property:

  • Debt to income ratio.
  • Good payment history.
  • If you don’t have an onward purchase, most residential lenders will want to see one or at least know the details.
  • If you already own a Holiday Let, and earn over £30k, you are in a good position with Lenders to be able to purchase another Holiday let.
  • Just because you have had setbacks or issues, doesn’t mean it’s not possible – you just need to work with an experienced Broker.

If you have any questions about Holiday Let Mortgages, or would like a Free Quotation then please call us now on 03303 112 646 today. Alternatively please fill in our online enquiry form now and one of our Holiday Let Mortgage Advisors will call you back.

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Expat Residential Mortgage – Case Study

The Client:

Our client is an Expat working as a Sales Director and living in Hong Kong until recently when he moved to Japan. The client works for a UK based multi-national company and earns good income with most of his overseas expenses also being paid by the company.

The Scenario:

The Client was seeking an Expat Residential Mortgage to enable him to purchase a property for him and his family to live in upon their upcoming return to the UK. The client had a handsome 40% deposit.

Contact us today to discuss Expat Mortgages and how we can assist you.

The Solution:

Being a whole-of-market Broker, we could easily offer standard Expat mortgage rates and terms to this client as we have access to all of the Expat Mortgage Lenders, including the specialist lenders.

However, through our specialist Expat knowledge and experience along with the clients’ strong credit profile and large deposit, we were actually able to offer

him standard UK Resident (non expat) mortgage rates, even though they were still living in Japan. This was an excellent outcome for the client as the rate secured was an overall 1.1% cheaper than the cheapest Expat market rate that the client was eligible for.

Discover our Commercial Mortgage Broker services.

Summary:

When looking for a “Buy to Live” property it is important to remember that a family member will have to occupy the property when the mortgage holder is abroad, as the property cannot be left vacant since this would invalidate the buildings insurance.

Key things to consider for Expat Mortgages:

  • Certain currencies will not be accepted by Lenders- usually if the currencies is considered volatile.
  • Expat Mortgage Interest Rates are usually higher than standard (UK Resident) mortgage rates.
  • Lenders’ Arrangement Fees are usually a percentage of the loan rather than a  flat / fixed fee.
  • The client/s will need an active bank account and credit footprint in the UK.
  • Loan to Values are typically lower.

If you have any questions about Expat Mortgages, or would like a Free Quotation then please call us now on 03303 112 646 today. Alternatively please fill in our online enquiry form now and one of our Expat Mortgage Brokers will call you back.

bridge to bridge
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Regulated Bridge – Case Study

The Client:

A client was looking to purchase a property via auction which came with a strict completion deadline. As the client was a foreign national, sourcing a lender able to lend could have been a difficult process.

The Scenario:

As specialists in bridging as well as foreign national mortgages, we were able to find a lender who would consider the case within 24 hours. The value of the property was £200,000 with the client providing a deposit of £80,000.

Contact us today to discuss Bridging Loans and how we can assist you.

The Solution:

The first thing we did was to source a viable exit strategy for the client to ensure they would be able to clear-off the bridging loan – also known as “exit the bridge”. After referring the case to several suitable lenders, we provided the client with two competitive remortgage options. This provided the client with the peace of mind they required to meet the affordability criteria to be able to pay off the bridging loan and also meeting the main requirement for the bridging lender.

Discover our Commercial Mortgage Broker services.

We then requested all packaging requirements in advance from the client to ensure that the lender was able to review the case as quickly as possible so that we could ensure the legal work could be carried out without any delays.

After meeting the completion deadline, we were than able to focus on the re-mortgaging of the property so the client could recoup the interest costs of the bridging loan, as well as having the security of knowing they have a long-term mortgage on the property. 

Summary:

For more details on Bridging Loans, please refer to our dedicated website:
https://www.uk-bridgingfinance.co.uk/

If you have any questions about Bridging Loans &/or want to receive a free quotation, please call 03303 112 646 today. You can also fill in this short online form to get started. Our team of Bridging Loan Experts will get back to you straight away.