We pride ourselves on providing common sense lending decisions and wanted to share with you a recent application where we we’re able to support the broker and their client, when others had said no.
The applicant was looking to capital raise a gross loan of £244,494 on their unencumbered residential property to purchase an investment property to rent out, alongside clearing £33,000 of credit.
Potential lending constraints:
- The security was gifted to the applicant by their father within the last 7 years and an indemnity was required.
- The applicants father had contracted Covid-19 which meant he was unable to travel to the solicitors.
- The applicant had taken out a substantial amount of pay day loans between 2018 – 2021.
Central Trust’s holistic view of the application:
- The applicants father had completed a statutory declaration back in July, which upon review by our solicitor confirmed it contained everything we required.
- The applicant explained that they were given poor advice on the pay days loans being led to believe they would help improve their credit rating.
- The applicant could evidence via bank statements that the pay day loans were not needed as they showed surplus funds alongside them being cleared every month.
- The applicant had no bounced payments, they were not in their overdraft and their credit profile was clean.
Customer outcome:
- We were able to lend the applicant the full amount over a period of 288 months, on a variable rate of 8.1%.
- The applicants outgoings were reduced by £569.68 per month.
- The applicant went on to complete on the BTL purchase, generating an additional income stream.
- The applicant intends to remortgage at the end of the fixed rate mortgage.
At Central Trust, we pride ourselves on assessing each and every case on its own individual merits and use a common sense lending approach to provide good customer outcomes.
Loans from £10,000 – £250,000
4 units of adverse in 12
Smaller advances – loans from £10,000
No income multiples
