Benefits income can be challenging when looking at mortgage affordability. See how BrokerSense can make this effortless.
Placing mortgages can be challenging when benefits income is concerned. Lenders have a huge disparity between them on what incomes they will accept and will judge the overall percentage of this income in relation to other earned income.
BrokerSense makes this simple by feeding your clients incomes into every affordability calculator in a matter of seconds, and showing you the maximum loan each will offer for the given figures.
Here we want to look at a recent client and how BrokerSense helped AALTO Mortgages Ltd deliver the right advice to the client in a fraction of the time it would have usually taken.
John and Sue have 3 kids, and sue is currently not working and looking after the youngest child. John works part time and earns £19,000 with a £2k annual bonus. They receive support in the form of Child Benefit, Child Tax Credits and Universal credit which amounts to about 75% of their total household income. As such finding a mortgage was challenging.
They needed to remortgage their home, their existing lender wasn’t offering mortgages anymore and so they needed to move elsewhere. They needed a mortgage of £85,000 at 65% loan to value. They had approached their high street bank who had told them that they simply couldn’t afford it, despite the new monthly repayments being around two thirds or the current amount they had been paying for years.
The options are not great. Out of 50+ residential lenders, BrokerSense is the only product on the market that searches all lenders, not just a select few, only 10 lenders would consider the amount they required. Of those that would consider some or all of the benefits they received, they offered on average just £45,000.
Using BrokerSense the options were obvious immediately, and the brokers job was simple, with a shortlist of 10 lenders to compare on price and other criteria, rather than all 50+ on the market.