Low rate for client with adverse credit record

MORE

Proposition

Our client, the daughter and employee of a well known entrepreneur, wished to borrow £325,000 to purchase a property for £600,000 (a loan to value (LTV) ratio of 54%). She had a very low credit score but this was caused by her limited credit history and a minor dispute with a mobile phone company.

She had already spoken to a broker who had referred her to specialist adverse credit lenders who quoted her a rate of 5% with high arrangement fees.  Luckily for her, she was referred to us by an existing Private Finance client.

Solution

Given our client’s background and the relatively low LTV, we were able to negotiate a 2 year discount offset mortgage at 2.89% variable rate (APR 3.8%* - the overall cost for comparison) with a £999 product fee and no early repayment charges. The bank took a view on the low credit score and credit record because of the overall profile of the client.

By using Private Finance rather than the alternative broker and adverse credit lenders, our client may potentially save thousands of pounds in interest. The Private Finance mortgage consultant also went to her office to complete the application, something the initial broker did not offer to do.

 

*APR (the overall cost for comparison) calculation based on a 2 year term, interest only mortgage with the lender charging a £999 product fee and legal and valuation fees of £2,000. The actual rate available will depend on your circumstances. Ask for a personalised illustration.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

© Private Finance Limited, 2020. Private Finance provides independent mortgage advice and arranges individual mortgage solutions for clients. Private Finance is a trading style of Private Finance Ltd, 29 Lincolns Inn Fields, London, WC2A 3EG, registered in England no. 3855776 and its Appointed Representatives. Private Finance Limited is authorised and regulated by the Financial Conduct Authority (FCA registration number 310566).

Private Finance Ltd is rated 4.95 stars by Reviews.co.uk based on 822 merchant reviews

4.95 / 5 Rating
822 Reviews
I found Private Finance to be a fantastic helpful, knowledgeable, patient, service. I really can't recommend you highly enough. Thank you for the superb help which is why we always come back to you.
Efficient and friendly service. Made being abroad and switching to a non-resident mortgage straightforward. Thanks Tim Nye!
Mike Perrin and private finance were recommended by a friend. From the moment I reached out to Mike, I received a very professional and personal service. Mike was able to digest my individual circumstances and find the right product for me and offer his expertise along the way. Being able to complete the majority of the paper work online was also highly convenient. Once the product was selected, the support between application to completion remained, with both Mike and Dan offering their support throughout the process, answering any queries and concerns in a timely manner. Thanks for all the help and look forward to working with you again in the future. Osman
The British Mortgage Awards 2015 back to top