The Intermediary – February 2025 - Flipbook - Page 56
B RO K E R B U S I N E S S
Case clinic
HARPENDEN BS
Court Judgment (CCJ) for £2,000, which was
registered just 12 months prior.
The client faced financial hardship during a
period of unemployment and was unable to keep
up with some debts.
Since then, they have worked hard to recover
financially, settling the outstanding amounts, but
the CCJ remains a barrier.
I am afraid we would not be able to assist with this
case. The CCJ would need to have been satisfied
for three years to apply for a standard residential
mortgage at a maximum of 80% LTV.
Our Credit Repair product offers a maximum
LTV of 70% and will require either the CCJ to be
satisfied for at least 12 months or on application.
WEST ONE LOANS
UNITED TRUST BANK
Clients who have suffered with historical credit
issues are not rejected simply on those terms by
West One.
In fact, we have integrated these types of
borrowers into our criteria and product ranges to
meet the needs of those with adverse criteria.
Our Prime Plus product would potentially be a
suitable option, though it allows for a maximum
LTV of 85%, meaning an increase in the client’s
deposit would be necessary. However, we do
offer enhanced ranges which can consist of more
attractive rates, but they require the client to have
had no CCJs within 24 months.
Unfortunately, this proposal falls outside of UTB
Mortgages’ lending policy for two key reasons. As
the applicant has a CCJ in the last 12 months we
would only be able to offer our Near Prime product
which has a maximum LTV of 85%. In addition,
with the 10% deposit, the applicant’s required
loan-to-income (LTI) of 5.6 exceeds our maximum
of 4.5 for a 90% LTV application.
If the applicant had a 15% deposit, then our
max LTI of 6.0 in conjunction with our Near
Prime product may be suitable, subject to the
affordability assessment.
TOGETHER
The society could consider this type of lending, but
it would not be possible with an LTV of 90%. Due
to the very recent CCJs and the previous several
missed payments, it would be on the impaired
product range which would be restricted to
70% LTV.
The society could consider this if the applicant
had additional deposit. Family gift could be used to
help support. The reason for the financial hardship
would be acceptable. ●
BUCKINGHAMSHIRE BS
Together would be fine to lend to this applicant
assuming their demerit status was no more than
three in the last 12.
The CCJ would not be an issue for us, as would
still allow them to be within our lending policy.
While it is unlikely that we would be able to
offer 90% LTV, as long as the borrower has been
working for 12 months continuously then we could
consider them for an application.
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