Broker partner Fluent Money approached Shawbrook Bank with a slightly ‘outside of the norm’ second charge mortgage enquiry, whereby the Applicants were looking to raise £400,000 to carry out home improvements, including a rear extension to their dream home which they purchased at the start of the year.
The couple were living in rented accommodation whilst they searched for their new home and in this time also became parents.
Upon purchasing the security valued at £4million, they decided that although the property stretched over three floors and would be habitable, as they could comfortably afford the rent on their current accommodation plus the mortgage, they would prefer the works were complete prior to moving in with their new born baby, whilst noisy renovations taking place.
The tricky part was that Shawbrook’s criteria states that the applicant must reside in the security for a minimum of 3 months.
Given that the property was habitable and that Shawbrook were not lending for heavy refurbishment, the lender was comfortable to make the exception on the grounds that they had full listings of the works to ensure the funds would be sufficient, along with the required planning consent, a full rent reference from the letting agent and previous mortgage history. They also factored the rental income into the affordability given the applicants were yet to move out.
The bank obtained written confirmation on how long the works would take and a formal notice from the applicant to the landlord confirming they would end their tenancy by November, by which time they were happy to move in.
A full valuation was carried out and the surveyor confirmed the security was indeed habitable and mortgageable.
The applicants were able to successfully raise the funds required to carry out the renovations and with the case having been referred initially for the exception, Shawbrook were able to move swiftly to Offer within just 3 weeks of submission.
Simon Moore, Group Director Fluent Money:
“This case was a great example that there will always be scenarios in the market place where standard criteria simply doesn’t cover or was not designed to capture this particular instance.
Affordability was not an issue and the rationale behind the clients not living there was clear, could be evidenced with schedules of work and timescales making this a temporary problem.
The case needed a quick response and once the salient points were presented to the lender, and if they were to accept, then full commitment to hitting the deadlines would be needed.
I am delighted to say that Shawbrook’s quick referral process and appetite to understand the nuances of the case meant that we could fulfil this client’s wishes ahead of schedule.
In the current climate where we are seeing fresh challenges and an ever evolving landscape it is great to have the support of lenders who are willing to consider excellent cases, albeit they have aspects to them that previous criteria may not have taken into account.”
Gavin Seaholme, Head of Sales Property:
“Working with our partner, Fluent Money, we have succeeded in providing a great solution for the Applicants. Our continued support for our Brokers in the current climate shows that we are a safe pair of hands as we move forward with more positive news and an appetite for larger applications that we will deliver on.”