At Hayes Finance, we pride ourselves on tackling the peculiar cases—the ones that seem impossible and have already faced rejection. Our goal is to provide tailored solutions that meet our client’s unique needs. This case study highlights how we helped a first-time buyer, a nurse turned self-employed contractor, secure her dream home after being turned down by traditional lenders.
The Challenge
Our client, an NHS nurse, had recently transitioned to self-employment, contracting her services back to the NHS. Despite having a stable income and five years of experience in her field, her self-employed status posed a significant challenge when she sought a mortgage. Most high street banks require two years of accounts from self-employed individuals, which she did not have, as she had only been trading for three months.
The Solution
Determined to help, we explored alternative lending options. We found that Skipton Building Society and Principality Building Society were willing to consider her unique situation. These lenders recognised that she was effectively continuing her same role, just under a different payment structure.
Key Factors Considered
Experience and Stability: With five years of continuous service in the NHS, the lenders saw her as a low-risk applicant despite her recent switch to self-employment.
Loan-to-Value Ratio: She needed a 90% loan-to-value mortgage, a relatively high ratio, but feasible given her stable income and profession.
Property Details: The purchase price of the one-bedroom flat was £250,000, making it an affordable entry point for her into the property market.
The Outcome
We successfully secured a two-year fixed-rate mortgage for our client at a 90% loan-to-value with a 35-year term. This deal was tailored to her needs and provided her with the stability required to make her first property purchase.
Mortgage Provider: Principality Building Society
Loan-to-Value: 90%
Term: 35 years
Fixed Rate Period: 2 years
Property Value: £250,000
Property Type: One-bedroom flat in the Home Counties
The Client’s Journey
Our client, originally from Eastern Europe, had been living in the Home Counties for a while and found this property to be the perfect fit for her needs. The flat was close to her work, providing an easy commute, and it was located in a community she was beginning to call home.
Looking Ahead
We look forward to continuing our relationship with this client. In about 18 months, we will proactively reach out to review her mortgage options. Given her situation, she might opt for a rate retention with her current lender or explore new options with our guidance. Our goal is to ensure she remains ahead of the curve, securing the best possible terms as her initial deal approaches its end.
Conclusion
This case study is a testament to the dedication and expertise of Hayes Finance. By understanding the unique circumstances of our clients and leveraging our relationships with niche lenders, we can provide solutions that others might overlook.
If you’ve been rejected by traditional lenders, don’t give up hope. You just need the right mortgage partners to help you find the right mortgage solution for your needs.
For more information and to explore how we can assist you, get in touch; Kieran, Nicola, Ed and now Alan are ready to help you make the seemingly impossible, possible.
