In March, Shawbrook Bank’s residential mortgages team helped a couple struggling to secure finance because of the income they receive as foster carers, by providing a second charge mortgage for them.
The Ayrshire based couple approached broker Financial Planning Options to raise the capital required to increase the floor space of their home. This was by replacing an older style conservatory to create a large modern room with bi-folding doors that provided access to the garden.
A remortgage wasn’t the best solution in this scenario as the couple had an existing fixed rate on their first charge mortgage and would have been liable to pay an early repayment charge.
The clients did not want to take out an unsecured loan either as the repayments were expensive, plus they had taken out several other shorter-term commitments over the last few years.
David Orr, Financial Planning Options, said: “The service was fantastic from Shawbrook. Updates were always received within the same day and there was a seamless process once all the documents were uploaded.
“It’s always a positive when you can get to speak to the underwriter without any hassle and the front desk sales team assist with case updates.
“Thumbs up to Shawbrook for accepting an income source that other lenders are not keen on.”
Although lower rates were sourced by the broker, the featured lenders were not happy to include the couple’s foster care income.
But Shawbrook was happy to offer a second charge mortgage, as long as bank statements, remittance slips and a letter to confirm the foster care income could be provided, in addition to the couple passing Shawbrook’s other lending requirements.
Jeremy Law, managing director, residential mortgages, Shawbrook Bank, said: “David from Financial Planning Options has extensive knowledge of the second charge mortgage market and was aware that Shawbrook accepts foster carer income.
“He used his experience to provide the client with the correct outcome for their needs and we are delighted that Shawbrook were able to assist.
“This case demonstrates once again that a Shawbrook second charge mortgage can provide a viable solution for foster carers, as well as being a great alternative to a remortgage.”
