We’re trusted by our clients to provide a first-class service, tailored to each individual. A reputation we’re very proud of. It’s not often we get a case like the one we received in March. It proved to be a real test – but we were able to deliver. Here’s the story.
- First time buyer
- New build flat purchase
- Credit rating issues
- Contracts exchanged with no formal mortgage agreement in place
- Four week deadline to exchange completion
City Mortgage Solutions MD, Paul Clark, was delighted with his broker’s efforts – “I’m extremely proud of my team and delighted for our client. Considering she was a First Time Buyer with adverse credit needing an 85% Loan to Value mortgage and a very fast turnaround, the team have gone to extraordinary lengths to ensure a positive outcome. This case highlights just how flexible our service is and how far our experienced brokers will go in order to provide the right service for our clients.”
The full story
A new client approached the business on 7th March 2017 needing a first-time buyer mortgage on a new build flat that she was purchasing. Her circumstances were pretty unique.
She had been in the process of purchasing a property since May 2016 through a different broker. As the flat was part of a new-build development, contracts were exchanged in June of 2016 – off plan.
The issue was that the client did not have an approved mortgage with a lender at that time.
Incredibly, contracts were exchanged without a formalised mortgage offer in place. As a first-time buyer, the client was unaware of the full implications and the risks involved.
The clients’ original broker had recommended that they get a Decision in Principle or DIP, and wait until the end of the year to apply for the mortgage.
In November, the client contacted her broker to start the process of finalising the mortgage. This was when she first became aware that there may be a problem.
Having tried repeatedly to contact the broker without success over a six-week period, the client received a call after Christmas from another consultant at the company explaining that her broker had been on sick leave. The new broker assured her that they would use every effort to pick up her case in light of the tightening deadlines.
It was a week later that the client received a call back from the broker – and it was to ask some questions about her situation. Do you have an application in place with the lender, Precise? And, where are you in the mortgage process?
It was only following further dialogue that the broker discovered that the process was only at the Decision in Principle stage. And worse still, the agreement had now expired.
With time running out, her broker advised her that the entire process would need to be started again, from the very beginning.
The client gave the go-ahead to restart the process immediately.
The next blow was a big one.
The broker advised that the lender was not prepared to offer the full amount – meaning that the client was short by £20,000. A sum that she did not have readily to hand.
Having called a number of brokers, the client was met with the same response – sorry, we can’t help you.
Finding a mortgage solution
Frantic with worry and fearing that she would lose her home and deposit of £29,250 – even before completion – the client was referred to us through one of our existing clients in early March.
Having met with the client, our team uncovered an impaired credit rating as a result of an earlier CCJ and two late payments. The completion date of April 7th was also extremely tight. It meant that the pool of lenders available to process the clients’ application in the time available was small and, worse still, not one of them was prepared to accept her in light of the credit issues.
With a large pool of lenders available, but options limited, Kensington Mortgages agreed a Decision in Principle for the full amount on 14th March 2017, However, Kensington are not generally known for processing applications quickly and this was still a tough ask.
With the help of the customer focused team at Sesame Bankhall Group, and a call to the appropriate contacts at Kensington Mortgages, City Mortgage Solutions were able to push through the application.
A positive result
The case was fully agreed, with the mortgage offer available before the exchange deadline with the appropriate funds released on time. It meant that the entire process from City Mortgage Solutions was completed in just 4 weeks. Not only that, the client saved £200 per month on their original mortgage proposal. A great result for all involved.
Our happy client had this to say about the service she experienced – “City Mortgage Solutions have been fantastic. I’m so relieved to have finally been able to move in. The whole process was really stressful, up until the point where Lucy and Greg picked things up. Their hard work and commitment to resolve my situation was first class. I am so grateful for their efforts. Thank you!”