Our experienced mortgage advisers consistently help our clients to overcome mortgage application challenges. At James Leighton, we support a diverse range of clients with a variety of unique circumstances, including variable salaries and many other potential obstacles to having mortgage applications approved.
We leverage our extensive knowledge of the mortgage market and strong relationships with lenders to navigate the complexities of mortgage applications, achieving the desired outcomes for our clients. Sometimes this involves delving into the reasons behind declined mortgage applications to see if adjustments can be made to overturn decisions.
Many cases we encounter reveal issues with how lenders approach affordability calculations. Even when an applicant’s annual income comfortably covers the required mortgage payments, other affordability complications can prevent an application from being approved.
This case study reflects a situation where our client, N.S., faced difficulties in meeting affordability criteria for a few different reasons, and we were able to work with her and the lender to resolve the problems encountered.
Background and challenges
N.S. got in touch with our mortgage advice team for support in obtaining a mortgage, which involved several complexities. The applicant worked as a locum consultant for the NHS, which meant that her work pattern varied and therefore her salary fluctuated depending on her working hours each month.
Historically, the client had significantly boosted her income by working overtime, which at one point resulted in an additional £20,000. However, as the client had not taken on any overtime in the qualification period, which was eight months, the overtime income had not been factored into the calculations with the lender she applied with.
Another complication was that N.S. owned a second residential property in Scotland. When the application was assessed, she did not meet the affordability requirements for the loan amount she needed to buy a property when taking the additional property into consideration.
At James Leighton, we specialise in finding mortgage solutions for our clients that they often cannot access when they approach lenders directly. A declined mortgage application can result in applicants giving up on their dream of buying a new home.
Tailored solution
Our mortgage adviser gathered all of the relevant information from the client to identify suitable mortgage products based on her variable salary. She also had credit card debt that our team established had impacted her affordability assessment.
We reached out to NatWest to discuss the client’s affordability assessment and discovered that clearing the credit card debt and increasing her deposit amount would enable her mortgage application to be approved.
The client was requested to provide all the required documentation to prove income and affordability for both properties. She also needed to provide evidence of the increased deposit funds through bank statements.
Once she had paid off her credit card debt, this improved the Debt to Income ratio, and she successfully met the affordability assessment needed to be approved for her mortgage loan amount.
Outcome
N.S. was thrilled with the help of our mortgage team and the extra work that we completed to ensure that she could get approved for her mortgage. The more complex structure of her income had posed problems with her initial application, but our expertise allowed us to advise her on financial adjustments that would make her application successful.
Our client showed great appreciation for our support, as she had not considered the impact that the credit card debt would have. By reviewing every aspect of her financial circumstances, we quickly identified a solution that allowed her to purchase her home.
N.S. was able to place an offer on the property, which was accepted, and the property purchase was completed without any further difficulties. She is now happily settled into her new home.
At James Leighton, we specialise in finding mortgage solutions for our clients that they often cannot access when they approach lenders directly. A declined mortgage application can result in applicants giving up on their dream of buying a new home.
Our mortgage team uses our expertise to work through all the details to help ensure that criteria is met to prevent mortgage declines.
We work on cases like this every day, and we are proud to have an amazing team of mortgage advisers who constantly go the extra mile to help our clients.
This is for illustrative purposes only and does not constitute advice.
Related case studies
-
Bi-annual bonuses
H.S.’s bonus structure was bi-annual, but the lender assessed based on an annual bonus.
- Call: 0115 870 9520
- Email: enquiries@jlfs.co.uk