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On the case

Client A is self-employed and wants to remortgage a buy-to-let property for 325,000 and raise funds to clear off various debts. Client A has lived in Spain for two years and also has two properties in the UK, one of which has missed mortgage payments of three months within the last six months. The client is also slightly behind with payments on the second property.

The Case
Client A is self-employed and wants to remortgage a buy-to-let property for 325,000 and raise funds to clear off various debts. Client A has lived in Spain for two years and also has two properties in the UK, one of which has missed mortgage payments of three months within the last six months. The client is also slightly behind with payments on the second property.

What the broker says:
Andrew Montlake, director, Cobalt capital

As an independent broker in London able to package for most lenders, you would have thought there would be no real need to look down the packager route for assistance, but that is not strictly true and it is probably a touch arrogant to assume this. Last year we had an enquiry on a sub-prime basis that we struggled with. Sub-prime is not a huge area of business for us, given that the majority of our clients come in the high net worth category. But like many brokers now, we have seen this to be a growing area.

The client in question was referred to us from an existing customer who was of some importance to us, so we were keen to assist. The new client wanted to remortgage a buy-to-let property for 325,000 in order to clear off various debts. The property achieved a rent of 1,700 per month. Unfortunately, the client had lived in Spain for two years and had been self-employed as a beauty therapist, which made proof of income relatively difficult.

The client had also had some issues with the invisible costs of buying in Spain and at the same time the client’s bank had withdrawn an overdraft facility and the costs had mounted up.

The client had two properties in the UK, one of which had missed mortgage payments of three months within the last six months, while the other was also slightly behind.

After the usual ringing around trying to place the case with no real success, as a last resort it was suggested that the consultant approach a packager which might have more expertise in this particular marketplace than ourselves. We approached Beacon Mortgages as a packager to see if it could shed any light on where the case could be placed.

Within a couple of hours we received a call back informing us that that in fact Beacon Homeloans itself could provide exactly the funding the client required and a deal was struck. We helped our client, who got the monies needed to get back on track and everyone was happy.

As London brokers it can sometimes be difficult to admit that we do not know everything, but it is important for us to remember that there are packagers with a great deal more experience and knowledge in certain areas. Being able to work together helps all parties involved, and most importantly helps clients satisfy their needs.

What the packager says:
Clive Wilson, head of sales, Beacon Homeloans

Beacon Mortgages has built a reputation by justifying the broker’s choice for using the packaging services it offers. We were able to call upon the expertise and flexibility of Beacon Homeloan underwriters in order to help the client achieve what they wanted within the shortest of timescales.

While Beacon Mortgages is a specialist mortgage packager within the Beacon Group, it is treated in the same way as our other panel packagers. In this particular instance, we were able to provide a competitive product and an excellent service to the packager, allowing the broker to provide a positive solution for their client’s requirements.

If you have had a problem case that was resolved by a distributor which you would like to highlight, send the details to mortgage.distributor@centaur.co.uk

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