£400,000 mortgage for client with settled credit card default
Case details
After moving to Singapore for a short period our client returned home to find that he had missed payments on his £8,000 credit card debt.
He thought that the payments were being made, but he was not receiving his statements and did not call the bank to check. Once he realised that he was in arrears, the debt was settled.
Solution:
The vast majority of banks are credit score driven and they do not like offering mortgages to clients with missed payments.
There are more lenders entering the market and offering mortgages to clients with missed payments on their unsecured debts. Although, they want to understand how the problems occurred and how quickly they were settled.
One of Trinity’s expert advisers approached a small building society offering mortgages to clients with credit blips. The lender was happy to provide funds as our client had track record of making other payments on time and he had a large salary.
Source: Existing client referral
Property: Three bedroom house in London
Value: £550,000
Mortgage: £410,000
Rate: 3.59% fixed until 30/06/2020
APR: 4.7%
Reversion rate: Standard variable rate currently 5.24%
Lenders arrangement fee: £1,045
Mortgage term: 19 year term
Repayment type: Full capital repayment mortgage
Loan-to-value: 75%
Early repayment charge: 3% before 30/06/2020
The actual rate available will depend on your circumstances. Please ask for a personalised mortgage illustration.
If you have missed payments on your credit card or unsecured debt, call Trinity on 020 7016 0790.
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