Low rate for client with adverse credit record

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, 2019. 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 4.94 stars by Reviews.co.uk based on 542 merchant reviews

4.94 / 5 Rating
542 Reviews
I would highly recommend Private Finance Ltd. Alex Weldon in particular helped us secure our first mortgage. He answered all our queries in record timing (usually within 15-30mins!) and nothing was ever too much trouble. Alex was always on the other end of the phone if needed and he made the process as smooth as possible.
Ed and Donovan are brilliant at what they do. I have used them many times now and each time they have been able to find me a great deal and handle all the complexities of my case. I would always recommend them to anyone.
Great and professional team, especially Elizabeth O'Connor, who guided me through the purchase, which was successfully completed! Highly recommended.
The British Mortgage Awards 2015 back to top