Case Studies

Summary

Direct communication with underwriter secures complex mortgage, with 1.84% rate

Existing £640,000 mortgage tied in with painful 3% redemption penalty

Extensive land with the property normally barrier to mortgage lending

Our Client

The client had found a new ideal property in West Sussex he very much wished to secure, but his existing £640,000 mortgage was tied in with Santander by a large 3% penalty until 2023.

What was needed

The client needed to secure the complex borrowing for his extensive new home without incurring the 3% charge to redeem his existing mortgage.

What was the challenge

In addition to the issue of the redemption penalty, the challenge was that the property was sited on 16 acres of land. Santander’s standard lending policy is for properties with a maximum of 10 acres.

How we provided the solution

Jerome Fick Executive Director, took on the client’s case, ascertained what his client’s mortgage goals were, and successfully piloted the case through the complex lending process.

Jerome was referred through his Santander contact directly to a high-value underwriter with whom he discussed the case in depth as a first step. The underwriter added a few additional requirements and after a few further questions, which Jerome was able to satisfy, the underwriter was happy to consider the case.

When Jerome submitted the case, the underwriter in turn contacted the valuation company and told them not to decline the valuation based on property size. The valuation was completed with the only requirement a request to see Title Plans.

The client was delighted to secure the 16-acre home he longed for without having to pay a mortgage redemption penalty of over £19,000 and remain with his existing lender.

The estate agent had told the client that it was unlikely that he would be able to secure a mortgage with Santander for a property of this size and value because of the lender’s land acreage policy. The agent had been involved in the sale of a number of these larger high value properties so was very familiar with the current challenging restrictive bank lending policies on these types of property. The agent was amazed and pleased that Jerome secured this complex mortgage with the client’s existing lender without financial penalty.

This is an excellent example of expert advice and knowledge of underwriting working for the client in a complex case. Often remaining with your bank is the best option but not all brokers are willing to consider this approach.

What was the rate

The interest rate was 1.84%