Adverse Credit (CCJ’s / Defaults) – £500k Loan with High Street Bank.

Our client approached us with the intention of buying his first property. There were a few issues with the case in terms of credit history and age. He had previously been advised that he would be restricted to subprime/ adverse lenders with rates circa 4% and secondly the term would be restricted to age 75, giving him a max term of 15 years. This was stopping him purchasing a property as the monthly payments were too high for him. On discussion with the client, the adverse credit was due to a divorce 4 years previously and we could see from his profile that he had actively settled the defaults and CCJ’s and all of them had been registered around the same time. We were able to present his case to a high street lender with full details around his circumstances and secured him a good fixed rate mortgage with a 20-year term which met his budget for the mortgage payments. Our lender allowed the client to run the term to 80 to take his pension income into account. Understanding a clients’ circumstances is key when looking at options – just assuming any adverse credit in the background means no High Street Lender will lend is not an option for our advisers. If there is a legitimate circumstance which we can evidence, we feel it is our responsibility to look at this and approach lenders for them to consider this. Clear and through packaging of a case is key in situations like this, as the underwriters can then obtain a good picture of the client and circumstances, which then lead to a positive outcome. To discuss the refinancing or restructuring of your portfolio in the strictest confidence please get in touch using the below form.