With over £212million of mortgages and £200million of life cover sums assured arranged, we have more than one or two 'success stories' to share. Some of the places where we have arranged mortgages can be seen here.
And here are a few of our most recent examples.....
Case study 1: Buy To Let mortgage – newly self-employed, no accounts
Mr and Mrs P wanted to venture in to Buy To Let, having always had an interest in property.
Just before leaving permanent full time employment, Mr P capital raised a large sum of money from his own home and deposited it all in to a bank to use as deposit monies and to cover fees, to start his property portfolio.
In January 2013, Mr P became self employed and in February 2013 he contacted us and asked us to assist with a BTL mortgage for a proposed purchase.
The 'sticking point' factors here are; 1) Mr P is a 'first time landlord', plus 2) he has only just become self employed and has no verifiable income or accounts and then also 3) (something his previous Broker did not tell him) is that not all lenders will allow the use of released monies from own home as an acceptable form of deposit monies for new BTL purchases.
Mr P's case was professionally packaged by us and presented to an appropriate and suitable (high street name) lender. After deliberation by the credit committee, this case was fully approved at standard rates and Mr P now has his first BTL.
August 2013 - Update; second BTL property purchase now underway too!
Case study 2: Family life assurance cover - 2x children under 18 years of age
Both Clients (i.e. the parents of the family) work in jobs with no death in service (DIS) benefit. However, even if they did have DIS, most people consider this as a bonus and not something to rely on as a guaranteed, long term benefit for their family, especially in today’s climate of job insecurity and short term employment history. Considering what might happen (financially) to our Clients home and financial security in the event that either, or both, lost their physical ability to earn an income through serious ill health, disability, critical illness, sickness or accident, and of course in the event of premature death, they calculated the family’s monthly income need and also how much would be needed straight away to pay off any ‘lump sum’ liabilities, and a we also discussed an affordable budget right now to purchase the required financial support.
Taking into consideration all options such as family support, state benefits and other savings, accessible funds etc., a suite of financial products was implemented. From regular monthly income paying life cover, to level term assurance for mortgage repayment and also including a Will too, which included nomination of guardians for their children, our Clients were able to plan their total financial security for within their stated affordable budget.
All relevant policies were placed in to Trust from the outset and so the potential payments of insurance proceeds were also protected against delays, claims and IHT which the assets with an estate are possibly subject to.
Case study 3: Short term lending - requirement to fund a property in need of refurbishment
Finance required for a renovation property purchase price of £65,250.
After works value approx £115,000 to £125,000.
Cost of works approx £10,000 renovation timescale 4 to 6 weeks”.
The Plan was to secure funding for 70% of the purchase price with the choice to either re-finance straight away (ie without the usual 6 month restriction) at 70% of the new Loan to Value or sell without penalty which would then realise the profit.
The deal found:
Interest Rates = 0.69% per month for the first 6 weeks then 4.7% plus Libor for the Buy to Let term facility.
Fees – 1.95% lenders arrangement fee for the purchase, then just 1% to switch onto the Buy to Let term facility.
There is no exit fee for the initial finance which was used to purchase the property. When the finance is switched to the agreed Buy to Let facility only from then onwards is there an early repayment charge of 3%
Original purchase price = £65,250 (inc deposit invested) + £10,000 (for works) = £75,250
New value = £120,000
Therefore, £120,000 – £75,250 – £5k underlying costs = £39,750 Gross achieved profit (in addition to full rebate of the £29,575 of initial personal outlay)
All this was achieved in 6 weeks.
Case study 4: Bridging finance for a reduced value property purchase
The terms arranged for this Client (who wanted a 65%LTP) arrangement to buy was as follows;
Purchase price £102,000
Short term net loan advance £66,050
Gross loan (inc added fees) £67,987 (included legal, arrangement and TT fees). No early redemption charge, Monthly interest payment 0.73%
Our Client then sold this same property (via an auction) for £135k within the month
So, £135k – £101k – £2162 (fees and val cost) = £31,838 gross profit (ie tax and other professional fees were payable) = so all of his money back and still a nice profit too, in just one month.
Case study 5: Partnership assurance, shareholder protection - ‘peace of mind’ for co-owners of business
Via an Accountant introducer partner, we were recommended to a new start up business with three co-directors and co-shareholders.
It is most often that a new business focuses on the potential good times ahead and are not properly advised to also consider the “what if’s” as well.
This Client has three equal shareholders, each of whom are married and each of whom invested a substantial sum in to their new business.
The questions asked by us during the initial fact finding meeting included; “what would happen to your shareholding if…. a) one partner was to prematurely die, b) the company’s mortgages which have personal guarantees were called in and c) if a widow wished to ‘cash in’ the inherited shares and sold to the highest bidder because money was a high priority need for her and the surviving family?”
The resulting conversation discussed the many possible stresses and worries that could come to fruition (issues that sometimes do arise when the business, it’s people and assets are not properly protected and secured) and so a strategic plan of “partnership assurance” to include shareholder protection with an implemented double cross-option agreement arrangement was presented and agreed.
For a cost equivalent to a tiny percentage of the Company’s turnover, the co-directors secured their Firm’s future and financial security and their own peace of mind for their family too.