The temperature may have dropped a little bit today (not necessarily a bad thing, it was a tad toasty yesterday) but our criteria is still very HOT when it comes to our Joint Borrower Sole Proprietor criteria.
I thought I would provide a case study of a recent case study to demonstrate the benefits of our Later life criteria which works so well with JBSP and how sometimes just 1 extra question can make the difference to a case.
The initial enquiry started out as:
Miss A (29)– FTB, Looking to buy her first home, self-employed, 2023 Net Profit £28,000, 2024 Net Profit £18,000. (The drop in income had an acceptable reason and client was now back on track to do similar/more than the 2023 figures)
Mr A – Dad (67) – currently working, wants to work until 75
Mrs A – Mum (63) – also doing a bit of part time work but more on an ad hoc basis
Looking for a Mortgage of £168,000 and over as long a term as possible to keep the payments affordable.
Due to Dads age, although it was affordable using the parents earned income, the term based on the above would be 8 years, alternative lenders had said it could be looked at to age 80, but again, the term was only then going to be 13 years which was still quite expensive monthly.
After asking if there was anything else in the background for when the parents reach retirement, they had:
- 2 x State Pensions (we can use the clients current entitlement as per the Government Gateway). That gave us an extra c£22,000 income in total that could be used for as long as possible
- More importantly, Mum and Dad had a few BTL properties within income declared on their SA302’s totalling an additional £12000 NET after finance costs. Which had initially been ruled out due to the fact they didn’t think they could use it as it was rental income, and, the properties were mortgaged (which is fine with us!)
This meant we could offer a longer term of 28 years, taking Dad to 95. This made the monthly payments for the new mortgage much more manageable for their daughters first home.
The difference from a 13 year term to 28 years was around £450 PCM, a lot more comfortable for the family overall. This meant they had a little bit more spare income on a monthly basis as the property did need a little bit of touching up and making their own. Giving a much better quality of life.
If you have any questions/queries or cases you want to discuss, or just simply want to know more about how Family BS can help you and your clients. Please feel free to get in touch and I would be happy to discuss our products and proposition over a coffee/teams/phone
Have a great week.
Kind Regards
Nathan Waller
Business Development Manager
M: 07387040895