The Challenge:
Our client faced a critical situation. Their existing interest-only mortgage was nearing the end of a six-month “grace period” offered by their lender. Adding to the complexity, missed payments in 2021 on a personal loan (impacting creditworthiness) and a recent switch to self-employment in 2021 meant that acceptable income evidence was unavailable and thus affordability for refinancing was challenging. Having already tried three brokers with no success, securing new financing seemed impossible. Without refinancing, our client risked losing their home to repossession.
Advantage FS Solution:
Understanding our client’s circumstances, our broker Tom conducted a thorough analysis. While traditional mortgage options weren’t viable at the time, we saw a future path. Tom drafted a detailed letter to our client’s existing lender, outlining the research conducted and the challenges of securing a new loan immediately. However, the letter emphasised the positive changes expected in our client’s financial situation within two years. Based on this information, we requested a two-year extension on the grace period.
Result:
Our client’s existing lender was receptive to our proactive approach. They granted the full two-year extension, providing much-needed breathing room. This success story highlights Advantage FS’s commitment to our clients, as our services are entirely fee-free until a successful mortgage offer.
Fast Forward to Late 2023:
As our client’s financial situation improved, we revisited their circumstances. By late 2023, the time was right to secure a new mortgage. Advantage FS leveraged its strong relationships with lenders to obtain a competitive interest rate from a leading UK lender. Importantly, the new mortgage was a repayment structure, ensuring our client’s long-term financial stability and eliminating the risk of future difficulties.
Client Impact:
Before contacting Advantage FS, our client felt forced to consider selling their home. Thanks to our perseverance and strategic approach, our client not only secured a mortgage extension but also obtained a new, secure loan that aligns with their current financial situation. Needless to say, our client is a delighted customer.
Key Takeaways:
This case study demonstrates Advantage FS’s unique approach to mortgage solutions. We don’t shy away from complex situations and believe in advocating for our clients’ best interests. Whether it’s securing an extension or finding the ideal loan product, Advantage FS is dedicated to helping clients achieve their long-term financial goals.
Contact Advantage FS today for a free consultation and take the first step towards owning your first home.
Tom Collier – Advising Director
DipFA CeMAP FSRE
Tom is our resident life insurance expert, he’s always been very enthusiastic about what is, let’s face it, a rather dull subject. In 2019 Tom assisted one of the UK’s top insurers in developing and launching a new life insurance product into the broker market. He’s previously worked for one of the UK’s largest insurers and most recently helped set up an insurance advice team for the consumer champion Which?.
Tom is a qualified financial planner with 10 years’ experience in the financial services industry, the majority of his career to date has been spent helping his clients with their mortgages. Tom is fully fledged petrolhead, you can usually find him tinkering on an engine somewhere in his spare time.
