Our clients' situation
Our client was referred to us after her purchase was close to falling through. She already had a broker, but the process had stalled because the financing for her existing property — which she intended to convert to a let to buy — could not be structured successfully. The challenge centred around meeting the affordability requirements on the background property. Without a workable mortgage solution for the let to buy element, her onward purchase could not proceed..
Alexander Hall's solution
After speaking with the client, our adviser identified that her personal income provided an opportunity to use top slicing. Top slicing allows a lender to take a client’s personal income into account when the expected rental income on a buy to let property does not fully meet their standard stress test requirements. The case was submitted, but the lender issued a down valuation on the client’s existing property. Rather than accepting the reduced figure, our adviser worked closely with the estate agency to gather comparable evidence and put forward an appeal. The appeal was successful, and the lender agreed to reinstate the original loan amount.
With the affordability resolved and the valuation issue overturned, both the let to buy mortgage and the onward purchase mortgage progressed to offer — both completed within around ten days.
To talk to one of our advisers about your mortgage needs, call us on 08000 38 37 36 or book an appointment today.
This is for information only. Products and rates vary depending on your circumstances, lender criteria and products available at the time.
