Case Study - Credit Issues

Our Client’s Challenge

Mr S and Miss K were First Time Buyers with a good deposit and a good salary. Unfortunately Miss K had a joint loan with a previous partner who had missed payments and defaulted on his loan, meaning Miss K could not go on the mortgage with high street lenders.

Our Advice

We explored different options with our clients. One being the potential of not having Miss K on the mortgage and what that would look like. As we also work with lenders that specialise in adverse credit, we explored what their options would be there.

The Outcome

Our clients were obviously both keen to be on the mortgage for their first house. We looked at the adverse lending rates and costs per month verses the high street lender rates. However they were happy to pay a higher rate for a couple of years while Miss K paid off the default and improved her credit score. We plan to review going with a high street lender in two years time when we complete their re-mortgage.