This was the classic situation of two divorcees that had got together and wanted to buy a property together with their children.
Unfortunately the existing lender could not lend them enough money as his new partner was in receipt of multiple income streams as her children were very young.
To compound the problem her main source of income was from a maintenance payment that was not court ordered or via the Child Support Agency.
However, she had been receiving it for two years from her ex-partner and he had never missed a payment.
But without the maintenance the required loan would not be affordable and so they were scared of losing their new home and renting was their only option
I conducted a market review and while some of the lenders would accept the salary and child benefit as income, they did not like the casual nature of the maintenance payments and if they did accept it, they only took 50-65%.
That still left me short on the loan amount.
As I was working alphabetically through my lender list I was fearing the worst until I came to Skipton.
They were happy to take the part-time salary, all of the child benefit and all of the maintenance in to consideration so long as I could show more than three months of regular receipts in to the bank account.
With all of their income deemed acceptable I inputted their details in to their online affordability calculator and the amount they would lend exceeded my client’s needs, meaning the new home was back on the cards.
Niche criteria learned
With the divorce/separation rate continuing to rise, the number of clients with multiple income streams will also rise accordingly.
This is a great bit of niche criteria from Skipton and worth brokers remembering.
It also reiterates the benefits of using a broker and as a result my clients were delighted, their children were delighted, the selling agents were delighted and I was delighted.
I had learned a lesson in Skipton criteria and we at Chartwell all know where to go when we get divorced clients looking to move.