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 576 merchant reviews

4.94 / 5 Rating
576 Reviews
Cold called Michael 17:23 on a Tuesday evening who within 20 minutes had gleaned sufficient information to email a solution on Friday afternoon. All correspondence and phone calls were answered quickly and accurately. Mortgages were raised in plenty of time for exchange. Michael, Maniksha and all others involved made an excellent responsive team making a difficult situation so much easier.
Just brilliant. Simon and Chloe have taken care of everything, twice now. The first time was really difficult, and Simon put in a huge amount of work to make it happen. Second time around, Chloe has taken the lead and it has been seamless. Thank you!
Jason Hall has always been outstanding and faultless to work with. He's also a top guy that really makes me feel like I'm his only client. Thank you!
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