Mortgage Case Studies

Case 1

First-time buyer with a gifted deposit

One of the first clients who ever came to us through our innovative mortgage-sourcing service was a challenging one, but ultimately a case with a great outcome for everyone. 

The client was a young first-time buyer looking to purchase a home after an unexpected life event forced him to move out of his parent’s place. Affordability wasn’t an issue as his salary of £28,500 from a clerical job at a local hospital was enough to secure the amount he needed to borrow to meet the property’s £110,000 purchase price, with deposit factored it.

The only issue was where his deposit came from: he had some personal savings but the rest was cobbled together from gifts from his grandparents and an uncle on his mother’s side. 

This meant that he had already been rejected by a well-known lender on the high street and was deeply concerned about the impact on his credit report, not to mention stressed about his plans potentially collapsing, as remaining at his family home wasn’t an option.

I informed the client that some lenders are more flexible than others when it comes to deposit sources and reassured him that, with all of the gifted funds taken into account, his LTV of between 80% and 90% was actually favourable, and opened up a few options.

I was able to place him with one of the regional building societies, who put extra scrutiny around the origin of his deposit, but quickly got his plans back on track after that. 

Case 2

Remortgage with debt consolidation

We get plenty of enquiries from customers looking to remortgage for debt consolidation purposes at Teito, but this one had particularly high stakes.

The clients were a married couple in their mid-40s who had owned their own home for over seven years. They were running a successful bakery together, with healthy net profits, but fell into financial difficulties during the COVID-19 crisis and ran up some debts.

They had two personal loans outstanding, one of them with high interest, plus several thousand pounds in credit card debt. They were already struggling with these commitments and were concerned about what would happen when their current fixed-rate agreement expired in seven months’ time, following a recent Bank of England base rate hike.

A conversation with their existing mortgage lender had them convinced they might lose their business, as they were told debt consolidation would not be an option when they remortgage because their loan-to-value ratio was slightly higher than 85%.

But I saw this as an opportunity. After an extensive search of the market, I found that they would fit neatly at a leading intermediary-only lender, who was willing to offer them a remortgage with debt consolidation up to 90%. On top of that, the rate they were offered on a five-year fix meant that the repayments were comfortably within their means.

Not only were the clients able to remortgage, the consolidated debt and competitive rate they qualified for may have saved their livelihood too.

All clients' names and personal information have been excluded from these case studies to maintain their anonymity