Roger Taylor is director of sales and marketing at Preferred Mortgages
“The question does not state whether the applicants are employed or self-employed or whether they are able to prove income. If they are unable to prove their income we may be able to offer a self-certification mortgage.
With the introduction of an affordability calculator, lending 4.2 times the joint income is unlikely to be a problem as long as there are no outstanding credit card or loan debts. The level of adverse would also not be a problem and as long as the applicant has no current rent arrears, they could proceed on our near-prime product.
If the applicants are looking for the security of a longer term fixed rate product, we can offer two fixed rate options which would fit their requirements. Either a near-prime three-year fix from 6.24 per cent until 01/06/2010 or a near-prime five-year fix from 6.44 per cent until 01/06/2012, both with no extended tie in, are available to them.”
Ian Fitzgerald is area development manager for Thinc Group Ltd
“This scenario illustrates all the reasons why the clients should use a professional adviser. They have clearly applied direct to lenders and have been declined. This will show footprints on their credit records, which may deter other lenders from accepting their application.
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The first thing I would suggest is that they join a credit check company such as Experian or Equifax. This can typically be done for approximately £5.99 a month and they will then receive updates when any activity occurs on their credit file. This will also allow them to produce a full report which they can pass to their adviser.
A fixed rate product in the clients’ circumstances is feasible and should be available from a number of mortgage lenders. They and their adviser would need to examine their credit record in detail in order to obtain the best possible rates and then select lenders to approach based on this.”
Paul Hearnden, managing director for My Mortgage Direct
“Many lenders will lend based on affordability according to credit score. Therefore, the higher your credit score, the more they are normally willing to lend. Likewise, the higher the deposit, the more likely a lender will agree the case.
If the debts are cleared, it would be possible to look at the mainstream market and speak to lenders individually. However, with more lenders entering the non-conforming market, cases are often automatically cascaded into that category where previously it could have been referred to an individual underwriter. That said, there are more reasonable mortgage rates available in the non-conforming market now that competition is increasing.
If the debts are still outstanding, a good idea is to try lenders who automatically cascade clients onto the next adverse category. Lenders who offer this type of service are BM Solutions and GMAC-RFC.
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