Pound-for-pound remortgage with no loan-to-income cap

The borrowers

Daphne and Joe are self-employed customers who are looking to re-mortgage due to them coming to end of term with another lender and were unable to get a PT. They were looking to borrow £1 million with no capital raising, but they had a small default that was historic and had their loan on part interest only, part repayment.

  • They both had incomes that fluctuated quite heavily during the pandemic so they were struggling with a few lenders on what income to take
  • We could accept the latest year’s income based on assessment of case, but this was still lower than what it was when they took the current debt originally.

How we can help

For borrowers like this, we are able to remortgage them on our £4£ remortgage option, which has no set loan-to-income cap, and is instead based on affordability, meaning that we are able to stretch to 6.5 x income to bring the loan over on a part-and-part basis.

With the lower rate we had on offer, the broker was able to increase the part of the mortgage which was on repayment whilst keeping mortgage payment the same, providing not only a solution for today but to put them in a better place once the 5-year deal ended.

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