A mother of two who was going through a divorce wanted to purchase a home for herself and her children. As the main carer for her children, she chose to work a part-time role which fit easily around her busy lifestyle. However, costly child care fees and a part-time income meant that she failed a number of lenders’ affordability calculations.
Her older brother offered to help her with the mortgage payments, so she searched online for a solution and came across Ingard’s website. She arranged a callback with a Mortgage Adviser through Ingard’s website to find out if this was possible.
The Mortgage Adviser reviewed the applicant’s requirements and both her and her brother’s circumstances. It was agreed that her brother would join her on the mortgage as joint borrower, whilst only she would be named on the property deeds. This is known as being a sole proprietor on a mortgage.
As both siblings would be named on the application, the Mortgage Adviser needed to assess their combined income and expenditure to ensure that they could afford the mortgage. The expenditure is the amount the customers spend each month on their mortgage/ rent, bills, food and childcare etc.
Once the Mortgage Adviser had ensured that the amount she needed to borrow was affordable each month; they searched for which lenders had the best rates and lowest fees. A lender called Metro Bank, was chosen as the most suitable option as they offer low rates and flexible criteria which permit the brother to be on the mortgage.
The brother provided a deposit to his sister of 15% as a non-repayable gift. In the future when she looks to remortgage into her own name and her circumstances allow this, there will be no requirement for a transfer of equity. The mother of two was extremely pleased that we could help her secure her own home for her young children to grow up in.
For more information on mortgage products that allow additional borrowers to be named on an application, even when they do not intend to live in the property themselves, call our Mortgage and Protection Advisers on 01702 533 400 or arrange a callback.
This case study is for illustrative purposes only.