- Product: Residential Mortgages
- Loan amount: £315,000
- LTV: 45%
- Loan term: 28 years
The Borrower
The client is a single applicant, recently divorced, looking to remortgage in order to exit a bridging loan. The borrower had two recent CCJs and needed a lender with a flexible approach to income multiples.
The Situation
The client had originally purchased a six-bedroom property using bridging finance for £595,000, intending to renovate it and sell it on. Once the refurbishment was complete, however, they decided to keep the property as their long-term home rather than put it back on the market.
This meant the finance they now needed looked quite different from a standard remortgage. Rather than moving from an existing residential mortgage, they needed to refinance as part of a bridging loan exit.
Affordability was a central consideration, with lending required at six times income. The mortgage term also needed to extend to the client’s age of 75, which was acceptable given their occupation.
The case was further complicated by two recent small satisfied CCJs, both under £500. These met the criteria for placement on West One’s Platinum range, which allows both unsatisfied and satisfied CCJs and defaults under £500.
Our Solution
West One offered a £315,000 residential remortgage at a six-times-income multiple through its Platinum LTI Boost product. This enabled the borrower to refinance the existing bridging loan before penalties applied.
The product has no credit scoring and permits minor adverse credit, including recent or historic CCJs and defaults, as well as unsecured arrears where the account has not exceeded status “2” on the borrower’s credit file.
Following the renovation, the property’s open-market value had risen to £700,000, as confirmed by the valuer. Underwriters considered the six-times-income requirement, the increased property value, and the client’s individual circumstances, using a term ending at age 75 in line with the borrower’s retirement plan.
The Benefit
By taking a whole-picture view rather than applying a standard tick-box approach, West One provided a solution that a conventional lender may not have offered. This gave the client certainty and flexibility, allowing them to retain the property as their long-term home rather than return it to the market.
The Result
The client successfully refinanced the bridging loan onto a residential mortgage and kept the home they had initially intended to sell. They were able to settle into their new life on the Isle of Wight with the security of a long-term mortgage.
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