One applicant was employed and the other was a self-employed newly qualified dentist.
The self-employed applicant did not meet traditional self-employment criteria of standard 2 years track record or a contractor’s criteria as terms of the employment were based on a unique UDA contract with no previous experience of working a contract of this value.
Prior to receiving this full contract, the client only had a training contract and no tax returns to evidence income received.
We managed to get the intermediary arm of a major high street lender to approve lending in principle based on the value of the new full contract even though the client had only been 1 month into this contract at this income level with only employer payslips and credits on statements to evidence income.
However, at that point the client lost the property they were interested in and the search had to be put on the back burner due to the Covid-19 Pandemic.
Once the housing market re-opened later in the year, our client found a new property, but the lender who had agreed to lend in principle was no longer in the market at 85% loan to value, due to the uncertainty created by the pandemic.
The client now had a property ready, but no lending option to move forward.
At a time, when no other lender would consider this case due to the loan to value and uniqueness of the income structure, the previous intermediary lender that agreed the case, advised us that the high street arm of the group may be able to consider the case as it was something they previously agreed to, and the policy is broadly similar across the group.
We put together a case to present to the major high street lender and were able to secure the required lending for the client based on the value of the new contract alone and the client were then able to successfully complete the purchase and re-locate for the start of the new school year.
Please note, that the case study is based on a real-life scenario, but names have been changed due to client confidentiality.
Published March 2021.
It is important to take professional advice before making any decision relating to your personal finances. Information within this case study is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored advice and is for information purposes only.