Case study – Spring into action with fee-free remortgages!
Ready to turn adversity into opportunity?
With more than 600,000 households facing the prospect of interest rate rises when they renew their fixed-rate mortgages in the first half of 2024 alone*, it’s important to understand the flexible options available for your clients to secure the best deal for their circumstances.
Whether they are remortgaging to consolidate their debts, raise funds for home improvements or more – here’s an example of how Bluestone Mortgages helped this couple do this with a fee-free remortgage:
The scenario:
Ross and Emma are employed as Contact Managers for a medical supply company, but over the years have acquired some CCJs. Upon receiving an inheritance, the applicants were eager to leverage their property through remortgaging. Their goals? Securing funds to buy out Emma’s sister’s share, embark on home improvements, and streamline debt consolidation, all in one savvy move.
How we made a difference:
As their CCJs were over 3 years old, we were able to completely overlook these on their credit profile, and with a full valuation already completed, our underwriters took a holistic approach to the case. As a result, we were able to offer them a Fees-Free remortgage on their home, allowing them the flexibility to fulfil all the goals they had hoped to do.
Just this month alone, over 30% of our cases have been on Fees-Free products. If you have clients looking to remortgage their homes to free up some funds, or if you would like more information on Fee-Free Remortgages for clients with adverse credit, read the latest blog posted here: https://bit.ly/4bHC24U
Important update | We are making some changes
We are writing to let you know that from 6pm on Friday 24th May, we’ll be making some changes to our lending policy in respect of income treatment.
A summary of these changes are as follows:
Bonus/Overtime/Commission
- 50% of income used to calculate affordability unless fully guaranteed where we can accept 100%
Benefit income
- Child benefit no longer accepted
- To accept Child Tax Credits, the term of the mortgage may not exceed the 16th birthday of the eldest child
- We can now accept 100% of Child Tax Credits, Working Tax Credits, Incapacity Benefit, Disability Living Allowance & Carers Allowance subject to a maximum of 30% of household income
- Incapacity Benefit should be keyed into our broker portal as Universal Credit
Maintenance income
- Accepted to 100% if backed up with official documentation eg. a court order
Rental income
- Portfolio Landlords (4 or more properties): 100% of Net Rental Income after the portfolio is stressed at 125% of 5.50%
- Non-Portfolio Landlords: 75% of Net Rental Income
To ensure new mortgage applications are accepted under our current criteria, these must be fully submitted by 6pm on Friday 24th May.
After this time, any outstanding DIPs will need to be cloned to create a new case should you wish to proceed with an application.
If you have any questions or concerns about the above, please feel free to request a callback from your BDM by clicking here or calling 0800 368 1833.