Satisfied default success story to inspire you.
Sometimes, unforeseen circumstances can arise and impact your client’s ability to stay on track financially. At Bluestone Mortgages, we follow a manual underwriting approach to gain a realistic insight into your customer’s circumstances rather than turning them down based on an automatic credit search.
We understand that situations beyond your customer’s control could set them back and impact the way they keep up with their financial commitments. This case study illustrates how flexible we are in the way we deal with these default cases.
The challenge:
Sarah and Harry, a couple both working in retail, were looking to buy their dream home together. Unfortunately, Harry had a credit card default dating back to August 23 that was still outstanding. This occurred because a former partner had assured him that payments were being made on the credit card, but in reality, this was not the case, leading to the default.
The solution:
Their broker approached Bluestone Mortgages and submitted a DIP, the default placed the couple on our AAA product (80% LTV). However, we require defaults to be 6 months old at the point of completion and at the time, Sarah and Harry required an 85% LTV mortgage to secure their desired property. At Bluestone, we base our criteria upon completion, so our Underwriters were able to delay completion till Feb 2024. To help Sarah & Harry with a higher LTV, our Clear product range (85% LTV) allows one satisfied default – they just needed to provide us with evidence of settling the default.
The result:
Successfully, Sarah and Harry purchased their dream property with our assistance, experiencing a seamless journey to homeownership. By February 2024, they secured an 85% LTV mortgage, transitioning from our AAA product to the Clear product by taking advantage of our common-sense approach of basing our criteria upon completion.
To read more about our criteria surrounding defaults, read our blog by clicking here: https://bit.ly/4cS8vGV