This weeks case study highlights how Alexander Hall helped a self-employed client, find a suitable, flexible mortgage arrangement that fulfilled all their preferences.
Our clients' challenge
Our existing client was due to finish their tracker mortgage product and needed advice on re-mortgage options. They were also interested in moving home in the coming two years and wished to have the flexibility to repay the mortgage in the event of a sale, without penalty, but did not want to roll on to their 4.99% standard variable rate (SVR).
The client is self-employed and in the most recent year has earned a significantly lower income than previously, due to a change in personal circumstances. With lenders now generally imposing more stringent income affordability assessments, the client’s options were more limited, especially given that our client needed to borrow over 5 times their income.
Alexander Hall's solution
We sourced a lender that were able to assist on the basis that it was a ‘like for like’ re-mortgage transaction, meaning they were borrowing the same amount of money as before. The underwriter also took a favourable view on the reasons for the reduced income. The new product saved the client a significant sum against the potential increased SVR payment and also carried no early repayment charges on the mortgage. As expected the client was really pleased with the outcome and the ability to be flexible with their plans over the coming years.
