Special Situations, No Deposit and "Low Doc" Borrowers

To your average consumer, arranging a mortgage loan can seem difficult at the best of times, let alone when you’re going through difficult circumstances. There are plenty of situations – and these can be totally normal in everyday life – that might make it more difficult to get a mortgage loan, or to refinance a home loan. 

Our service advisors have seen it all though, and we’re well prepared for any situation you might have for us. Below we’ll run through some examples of special situations, and what you can expect from them.

No Deposit
Many people want to get a mortgage, but simply don’t have the upfront capital for a deposit. So, is it possible to get one arranged without a deposit? Actually, yes! If you have another property, you’re able to use the existing equity as a deposit. It could also be possible to get a no deposit mortgage loan if you have a guarantor. 

A guarantor will likely have to be a parent, and they’ll have to provide a guarantee (usually their property). They will need to have equity in the property, and generally, they’ll need to be working – most lenders will not accept retired guarantors. The conditions for no deposit mortgages aren’t always the most favourable, but we’ll do everything we can to give you the best deal possible.

Divorce or Adverse Life Event
It wasn’t so long ago that it was ridiculously hard to get a mortgage if you were divorced, or in the process of a divorce. Although those restrictions are largely gone, divorced applicants might still have some difficulties. They’re more likely to be attached to another mortgage or have a commitment to maintenance payments. This will offset your income and could inhibit the amount you’re able to borrow. We can negotiate with lenders to gain greater lending flexibility for you.

Retired
Being retired was another problem for getting a mortgage loan until quite recently. Retired people often have to choose between having a large proportion of their assets tied up in property or having a low disposable income. However, people are starting to make better provisions for the latter stages of life, and as people are living longer, the demands for borrowing at an older age are more significant. Although lenders are more trusting of retired applicants now, some circumstances will still require special attention that can be hard to traverse for those without experience.

Bumpy Credit History
Perhaps the most widespread of the special situations, credit problems indicate that someone has had a problem meeting their financial commitments for some part of the previous six years. Credit problems can be more or less serious, and require a case by case examination, but there are some things you must adhere to if you want to get the best conditions possible. 

Lenders will look for a clean current record, and by showing total honesty with us in regards to your previous transgressions – with as much detail as possible – you give us the best chance of negotiating something positive on your behalf. A credit score for home loans is integral, so this can play a pivotal role in the conditions of your mortgage.