Specialist Mortgages

Specialist Mortgage Requirements? No Problem.

We appreciate that every situation is different. You may be self-employed, or working as a contractor, currently living abroad, or you might have past credit problems that you feel may prevent you from obtaining a mortgage. At Financial Resolutions Mortgage Brokers, we are able to assist and guide you giving you clear advice as to what can and can’t be done.

Help to Buy | Equity Loan Scheme

A Government backed initiative designed to help first time buyers purchase a new build property.

Adverse/Poor Credit Mortgages

Designed to assist applicants with historic credit problems, including County Court Judgements (CCJs), Defaults, Individual Voluntary Arrangements (IVAs), Bankruptcy or missed/late payments on mortgage and debt commitments.

Holiday Let Mortgage

Holiday let mortgages are a different type of risk for lenders due to the property not being rented out all year round. Holiday lets may have peak and low seasons, meaning that the rental income received is likely to fluctuate. This provides less security to the lender that you will be able to repay the loan from the rental income received.

Contractor Mortgages

Due to the very nature of the work, contractors may not have a stable/regular income compared to those in full time employment. This raises the risk for lenders and can make it harder for them to calculate your mortgage affordability.

Bridging Loans

A bridging loan is a short term secured loan. Property buyers typically use bridging finance to “bridge” the gap between the purchase of a new property and the release of capital from an existing one.

Expat Mortgages

These are designed for UK nationals living abroad that wish to purchase property in the UK. Expat mortgage are available for both residential and buy to let properties.

Help to Buy | Shared Ownership Scheme

Unlike the Equity Loan scheme, this applies to both first time buyers and previous/existing homeowners. Help to Buy: Shared Ownership offers you the chance to purchase a share of a property (between 25% and 75% of the property value) and pay rent on the remaining share.

Guarantor Mortgages

A Guarantor or Family Assisted Mortgage, is a way of securing a loan when you lack the required deposit or have financial circumstances that can sometimes discourage lenders.

Self Employed Mortgages

Obtaining a mortgage when you are self-employed is not that different from obtaining one when you are employed. You will have access to the same mortgages and lenders as an employed individual. Its simply comes down to how your income is verified.

Second Charge Mortgages

A second charge is a mortgage secured against a property which already has a mortgage on it.

Development/Property Build Finance

Development finance is a mortgage or loan designed to help you fund the building of a property to you later in tend to sell or perhaps rent once it’s been completed.

Offset Mortgages

An offset mortgage is a mortgage with a savings/current account that is linked to the mortgage account. By doing this, the lender deducts the savings within this linked account from the outstanding mortgage balance to give a net balance. Interest is then only charged on the net balance.

HELP TO BUY

Equity Loan Scheme

A Government backed initiative designed to help first time buyers purchase a new build property.

A minimum deposit of 5% is required, with a government backed loan up to 20% (40% in London) of the full purchase price. You are required to obtain a mortgage for the remaining 75% (or 55% in London). You do not pay interest on the equity loan for the first 5 years.

You must purchase the property from a homebuilder registered for the Help to Buy: Equity Loan Scheme.

HELP TO BUY

Shared Ownership Scheme

Unlike the Equity Loan scheme, this applies to both first time buyers and previous/existing homeowners. Help to Buy: Shared Ownership offers you the chance to purchase a share of a property (between 25% and 75% of the property value) and pay rent on the remaining share.
You have the options to increase your share of ownership at a later date, subject to affordability.
These schemes are means tested with restrictions on household income – currently, £80,000 or less for property purchase outside of London, and £90,000 or less within London.
Mortgage schemes are available with minimum deposits of 5% of the share you purchase.

ADVERSE/POOR CREDIT MORTGAGES

Designed to assist applicants with historic credit problems…

Including County Court Judgements (CCJs), Defaults, Individual Voluntary Arrangements (IVAs), Bankruptcy or missed/late payments on mortgage and debt commitments.
Mortgage rates and charges tend to be higher with these types of mortgage due to the perceived higher risk by lenders that offer them. A larger deposit may be required.
An adverse credit mortgage may give you the opportunity to purchase a property whilst ‘repairing’ your credit file, enabling us to review your options and move lenders for a lower rate once your credit file has improved.

GUARANTOR MORTGAGES

A Guarantor or Family Assisted Mortgage is a way for family to help you get on to the property ladder

These deals are designed to help secure a loan when you lack the required deposit or have financial circumstances that may discourage lenders, such as:

  • An income not sufficient to cover the full mortgage by itself
  • Little or no history of having had credit
  • A less than perfect credit score

When someone agrees to act as mortgage guarantor, they commit to covering the repayments if you fail to keep up with them.

Depending on the choice of scheme, a guarantor will not own a share of the home, and they will not be named on the deeds. In the right circumstances a guarantor mortgage can be a perfect way for parents to help their children on to the property ladder.

HOLIDAY LET MORTGAGE

Holiday let mortgages are a different type of risk for lenders due to the property not being rented out all year round….

Holiday lets may have peak and low seasons, meaning that the rental income received is likely to fluctuate. This provides less security to the lender that you will be able to repay the loan from the rental income received.
Due to the limited number of lenders offering holiday let mortgages, rates and charges tend to be higher that standard buy to let deals and a larger deposit may be required.

SELF EMPLOYED MORTGAGES

Obtaining a mortgage when you are self-employed is not that different from obtaining one when you are employed.

You will have access to the same mortgages and lenders as an employed individual. Its simply comes down to how your income is verified. Lenders will usually require:

  • 2 to 3 years finalised accounts
  • Tax Calculations (also known as SA302s) to verify your income for the latest 2 to 3 personal tax years
  • Supporting Tax Overviews to verify the information provided on the SA302 and confirmation of the tax paid
  • Some lenders will also request a certificate to be completed by your accountant to authenticate these figures

A small number of lenders specialise in mortgages for self employed applicants with only 1 years finalised accounts. In this instance lenders may ask your accountant to provide a projection of earnings for your second year of trading.

CONTRACTOR MORTGAGES

Due to the very nature of the work, contractors may not have a stable/regular income compared to those in full time employment….

This raises the risk for lenders and can make it harder for them to calculate your mortgage affordability. Lenders will consider:

  • How long you have been contracting for?
  • The industry that you contract in?
  • How long you have left on your current contract?
  • What type of contactor you are – fixed term contractor, self employed contractor, contracting under an umbrella company?

Many of the high street lenders are willing to consider contract workers depending upon the individual situation, so competitive rates in line with rest of the market are obtainable. 

SECOND CHARGE MORTGAGES

A second charge is a mortgage secured against a property which already has a mortgage on it.

This second charge is entirely separate from your original or “first charge” mortgage. The borrowing will be on a different rate with a different lender that offer this type of deal. You will need your existing lenders permission before you secure a second charge on your property.

Examples where second charges might be an option:

  • Your current mortgage deal is on a preferential rate and you wish to avoid remortgaging to lose that rate
  • You are currently tied into a mortgage with early repayment charges applicable
  • Your current lender will not permit further borrowing
  • You are struggling to obtain unsecured borrowing (a personal loan) from your bank or building society

BRIDGING LOANS

A bridging loan is a short term secured loan.

Bridging loans are available to lenders and limited companies including landlords and property developers. These types of loan can also be used to purchase a property at auction where you need to have the financing in place straight away but may not have yet sold your current property. A loan term can be for a few weeks or months, usually up to a maximum of 12 months.

Bridging loans are priced monthly, rather than annually because they are usually only needed for a short period. As a result, they can be expensive with payments of between 0.5% and 2% per month and large arrangement fees. Bridging Loans are only advisable of you are confident the borrowing will not be needed for a long period of time.

DEVELOPMENT/PROPERTY BUILD FINANCE

Development finance is a mortgage or loan designed to help you fund the building of a property to you later intend to sell or perhaps rent once it’s been completed….

Planning permission is required before financing can be obtained and between 30 and 40% of the development cost will need to be funded by yourself. Lenders will usually insist on completion of the building project within 12 to 18 months. This type of financing is available to first time developers, but lenders will prefer applicants with experience in property builds. Alternative commercial borrowing is available for longer term property construction.

EXPAT MORTAGES

These are designed for UK nationals living abroad that wish to purchase property in the UK.

Expat mortgage are available for both residential and buy to let properties.
You may be living abroad and plan to move back to the UK in the near future. Alternatively, you may work abroad earning, but your family are based in the UK and you wish to purchase a property for them to reside in.

Buy to let deals may be suitable if you wish to remortgage a residential property on to a buy to let basis because you are about to move overseas. Alternatively, you may already be living abroad and have an existing UK investment property that need to be remortgaged.

OFFSET MORTGAGES

An offset mortgage is a mortgage with a savings/current account that is linked to the mortgage account.

By doing this, the lender deducts the savings within this linked account from the outstanding mortgage balance to give a net balance. Interest is then only charged on the net balance.

Offset mortgages are a good idea if you have significant amounts in savings. They also offer greater flexibility for those that wish to overpay on their monthly mortgage payment but would like access to the funds should they be required.

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OTHER SERVICES

Personal Mortgages
First Time Buyers
Re-Mortgaging
Home Movers
Help To Buy Schemes
Shared Ownership
Buy To Let
Personal Insurance

Life Cover
Critical Illness Cover
Income Protection
Mortgage Protection
Family Income Benefit
Buildings & Contents

Specialist Mortgages

Adverse Credit
Guarantor Mortgages
Second Charge
Bridging Loans
Contractors
Holiday Lets

Business Insurance

Key Person Cover
Shareholder Protection
Relevant Life Cover
Business Loan Protection