Unusual capital raising

From home improvements to holiday home purchases, buying out stakeholders and paying off loans, there are a myriad of reasons for capital raising. And with the mortgage market predicting a busy year of remortgaging, we thought we’d share with you some of the capital raising cases we have approved.

Read about an approved capital raising case involving father and son applicants who wanted to purchase two Buy to Let properties:

Father and son remortgage for Buy to Let purchases

The application: 

  • The father and son applicants requested £200,000 to remortgage the father’s unencumbered residential property, capital raising the full amount to purchase two Buy to Let properties
  • Both applicants worked for the same accountancy firm, where dad had recently become a director
  • They lived together in the subject property; the son paid rent and contributed to household costs and had no intention of moving out in the foreseeable future
  • Both properties would be self supporting

Our solution: 

Taking both salaries into account for affordability and having details of the accountancy business’ accounts for the previous two years, we then used projected income for the coming year for both applicants, to approve the mortgage at 40% LTV over 20 years

Intermediary Sales Manager, Julie Bourne, said:

“With dad having only recently become a director, he wasn’t able to provide two years’ proof of income for his current wage. At this stage, we put our manual underwriting into practise, and used projected income to determine affordability.” 

Ever wondered what happens in our Mortgage Referrals Committee?

Hinckley & Rugby for Intermediaries is inviting mortgage brokers to join a live online event, where brokers can discuss their clients’ cases with the Society’s Mortgage Referrals Committee (MRC).

The ‘MRC Drop-in’, will take place from 1-3pm on 14 March and will be an opportunity for brokers to present their cases directly to the Society’s mortgage decision makers, including Chief Executive, Colin Fyfe, Head of Underwriting, Sarah Johnson and members of the Business Development team. Or simply drop in to watch the decision-making process and ask questions.