The ex-military borrower struggling to fund his home extension: Case study

With his young family growing, the client wished to raise the capital to extend his home from a three to a four-bedroom property.

The client’s broker had diligently considered various funding options but was struggling to find a suitable loan outcome to meet the client’s requirements. A further advance was not available as the client did not meet his lender’s affordability model. A remortgage was not desirable as the client’s existing first charge mortgage had a low fixed interest rate and significant Early Repayment Charges.

Also, to remortgage, most banks required three years of UK address history, but with the client’s recent time abroad, the ‘gap’ in their address history would not have been acceptable. It was at this point that the broker called the packager to assist.

Positive Lending conducted a thorough review of the enquiry, considering the client’s unique situation, their good credit history, their affordability plus their income and expenditure.

With an enquiry review completed, Positive Lending was able to assess the loan options available from its lender panel. An unsecured loan was not possible due to the £60,000 loan amount and the loan term requested. In this case, the best client outcome was a second charge mortgage with a five-year fixed interest rate of 4.75%, which met the client’s objectives and provided the best financial outcome.

Over the next few weeks the packager worked with the client’s broker to gather the required documentation and submit a fully packaged case to the lender. Everyone was delighted when the client received his loan and was able to proceed with the extension of his family home.