Here at the Mansfield, we assess each application on its merits, which means we can make common sense lending decisions. In this case study we helped a limited company with two shareholders purchase a property over a term that extended into retirement when there was an historic credit blip.

The property was a 4 bed end terrace located in Suffolk and valued at £787,500. The company was looking to take out a loan of £400,000 meaning just under 51% loan to value (LTV).

The limited company had two shareholders aged 59 and 56 at the time of the application and with a loan term of 25 years, this would take them to age 84 and 81 at the end of the term.

The main shareholder was self-employed whose income was assessed on a nominal salary and annual dividends, we also had to consider a current residential mortgage as an outgoing for this applicant. The second shareholder had a minor missed payment on a phone plan over 3 months ago and we could see that there were no further adverse payments since.

Rental income was flexibly assessed with low season expectations at £889 per month, mid-season at £1,015 per month and high season at £1,499 per month.

With a 5 year fixed rate product chosen, we were able to flexibly accommodate circumstances requiring lending into retirement and an historic credit blip together with providing certainty of mortgage repayments costs for the next 5 years.

A common sense approach

If you’ve got a case on your desk that requires a common sense approach to lending then please pick up the phone to our Broker Support team on 01623 676360 or visit https://www.mansfieldbs.co.uk/intermediaries/.