Special circumstances
Your property may be
repossessed if you do not keep up repayments on your mortgage.
You can choose how we are paid for
mortgages: pay a fee, usually 0.5% of the loan amount, or we can
accept commission from the lender.
Please click on the title of the area that you are interested in
from the list below :
Already funding a mortgage
With the incidence of divorce and the
break up of relationships on the increase many people find themselves
shut out from the mortgage market because they are already party to
another mortgage on a property where they no longer live. This may adversely
effect a persons borrowing capability whether they are the person
making the payments to the loan of not.
When a mortgage lender makes an advance
to joint parties each individual party is responsible for the repayment
of the loan and a lender may approach one of the parties for full
repayment of the debt, even if the other party is no longer able to be
contacted. This principal is called "joint and several
liability" and is standard within most mortgage contracts in the
UK today. Until the property is sold, or a party is allowed to be
released from a mortgage, by a transfer of equity, agreed by the
lender, this situation will remain valid.
When a mortgage application is completed
a new lender will always ask if the potential applicant is already
party to a mortgage or secured loan that is not going to be repaid
before a new loan is taken up. It is a legal responsibility of the
applicant to disclose all loans of this type to any new lender.
A lender may take the view that, unless
an applicants own individual income can comes both the remaining loan
and the new advance, within reasonable income multiples, that a new
advance will not be granted.
This is a difficult area where it is not
possible to make a blanket statement regarding the acceptability of
another mortgage. The persons individual circumstances will be key to
the decision of any new lender.
Taylormade Financial Solutions recognise that this is a
problem which is present in the current mortgage market, and one that
is set to grow in the future. In our negotiations with lenders we
arrange for high levels of discretion to be available, in order to be
able to give these circumstances individual consideration based on
their merits.
Should this situation be relevant to you
then we would ask that you make this clear in the comments section at
the end of the application form. This will enable a lender to make a
balanced overall assessment of your individual situation. Any
supporting details should also be noted here. The general rule is that
the more supporting information that is provided, the better the
chances of receiving a positive result.
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There was a time that simply having been
divorced would have had a detrimental effect on a persons ability to
raise a mortgage. With divorce now so common this is no longer the case
and lenders treat applications from divorced customers in the same way
as all others.
There are however some particular
circumstances that may cause difficulties to divorced applicants. It
may be that a person already is party to a mortgage on a previous
property or that a commitment to maintenance payments exists. In
respect of maintenance payments, a lender will usually make an allowance
for these amounts when calculating an applicants income level and this
may effect the amount that a person is able to borrow.
As a general rule (although not true of
all lenders) the amount of maintenance payments made will be annualised
(monthly amount multiplied by 12) and this figure is deducted from the
applicants gross annual income. The resulting lower figure is treated
as the income of the applicant and maximum borrowing is calculated
against a multiple of this lower amount.
Taylormade Financial Solutions are aware that these
problems sometimes exist in the mortgage market and, in their
negotiations with lenders try to secure as flexible an approach as
possible to these situations. In as many instances as possible we will
indicate if a lender will consider advances in excess of the normal
income multiples. Although only a
guide these notes should help you in deciding if your own circumstances are suitable for the individual
product listed.
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Debt Consolidation
Ever felt that the number of credit card
and personal loan payments that you are making is restricting your
finances ? Clearing your unsecured debts and taking advance of the
lower interest rates offered through mortgage advances is often a very
cost effective way of reducing your monthly outgoings and getting your
finances back on track.
Debt consolidation is one of the most
popular uses of remortgage advances and Taylormade Financial Solutions recognise this
fact fully. Within each product profile we insert a "special
situations" section which gives a brief overview of the parameters
a mortgage lender will consider and in respect of remortgage advances,
the type of capital raising that will be accepted, including debt
consolidation. Although only a
guide these notes should help you in deciding if your own circumstances are suitable for the
individual product listed. Please note that by
consolidating debts into your mortgage you will pay more over the
longer term.
Think carefully
before securing other debts against your home. Your property may
be repossessed if you do not keep up repayments on your
mortgage.
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With increased property values over the
last few years owners of let properties have also seen their
investments increase significantly in value. Although a situation that
is welcomed it is sometimes difficult to arrange a capital
raising advance against a property which is already let out.
While lenders are now becoming used to
considering requests to purchase a property to let,
the market is still relatively new and so remortgage requests,
especially those that require a capital raising element, are still
relatively rare. Because of this and the perceived extra risk
associated with both buy to let mortgages and capital raising exercises
finding a lender willing to undertake this sort of advance can
sometimes be difficult.
Taylormade Financial Solutions are aware that these
problems sometimes exist in the mortgage market and, in their
negotiations with lenders try to secure as flexible an approach as
possible to these situations. Where we negotiate a mortgage offer that
will accommodate buy to let mortgages we will make clear, within the
product details, if capital raising is permitted within standard
criteria or if will be considered on an individual basis.
The FSA does not regulate some forms of Buy to Let Mortgages
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