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Case Study: Navigating Complex Lending

Applying for a mortgage is often seen as a straightforward process—but that can quickly change when your financial circumstances are more complex. Factors such as a recent IVA (Individual Voluntary Arrangement), irregular income, or purchasing through a shared ownership scheme can all make securing a mortgage more challenging.

In these situations, working with an experienced mortgage broker can make all the difference. Brokers have access to a wide range of lenders, including those who specialise in complex cases, and they know how to present your application in the strongest possible way. This opens up solutions that may not be available through traditional high-street routes.

Shared ownership, for example, is a government-backed scheme aimed at helping people onto the property ladder by allowing them to buy a share of a property—typically between 25% and 75%—while paying rent on the remainder. It’s a great option for buyers with limited deposits, but the mortgage process can be more involved than a standard purchase especially when other complex circumstances come into play.

Read our latest case study to see how we successfully secured a mortgage offer by identifying the right lender for a complex set of circumstances.

When Mr X and Mrs Y came to us, they were in exactly this position. They’d found their ideal home and were buying a 40% share valued at £126,000, based on a full market value of £315,000. However, their previous broker had hit a roadblock because Mrs Y had recently completed an Individual Voluntary Arrangement (IVA).

Even though Mrs Y’s IVA was finished, it still appeared on her credit record. For shared ownership purchases—especially when the deposit is small—this can be a significant hurdle. Many lenders are reluctant to approve mortgages under these circumstances unless there’s a substantial deposit, and even then, lending options can be limited.

A Different Approach

Rather than giving up, we looked at alternative solutions. The deposit was coming from Mrs Y, but since she wasn’t a direct relative of Mr X, most lenders would normally require her to be on the mortgage. This posed a problem because of her recent IVA. To work around this, we decided to proceed with the mortgage application in Mr X’s name only. However, because affordability was tighter with a sole applicant and the deposit wasn’t from a direct family member, we needed to find a lender willing to offer 100% of the share value.

Mr X had a solid credit record and some room to reduce existing debts to improve affordability. However, the key was finding a lender willing to take a common-sense, holistic view of their finances.

Finding the Right Lender

After thorough research and discussions with a number of lenders, we identified the one best suited to Mr X’s complex circumstances. They demonstrated flexibility and a willingness to consider his unique situation right from the start. We secured a Decision in Principle with this lender, managed the application process smoothly, and the client received a mortgage offer in a short timeframe.

This case highlights how specialist knowledge, persistence, and creative problem-solving can make all the difference—especially when dealing with shared ownership purchases and less straightforward financial situations.

Need Help with a Complex Shared Ownership or Mortgage Case?

If you’ve been told no or feel your situation is too complicated, we’re here to support you. With access to a broad panel of lenders and expertise in complex cases, we’ll do our utmost to find a mortgage solution that works for you.

SPEAK TO AN ADVISER

Your home or property may be repossessed if you do not keep up repayments on your mortgage or any other debts secured on it. A fee may be charged for mortgage advice. The exact amount will depend on your circumstances.

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Fairview Financial Ltd is an appointed representative of The Right Mortgage Limited, which is authorised and regulated by the Financial Conduct Authority. Fairview Financial Ltd is registered in England and Wales no: 10912424. Registered office: 107 Promenade, Cheltenham, GL50 1NW.

The guidance and/or advice contained within this website is subject to the UK regulatory regime and is therefore targeted at consumers based in the UK.

@ 2020 by Fairview Financial

Our Fees        

A fee may be charged for mortgage advice. The exact amount will depend on your circumstances.

Our standard fee for mortgages is £395 and this is paid when the mortgage is offered. We charge a fee of £295 First-Time Buyers. Other fees may apply depending on the complexity of the work involved or loan amount. The maximum fee we can charge is £795.

Our standard fee for Equity Release is £895 and this is paid on completion.

We also receive a commission from the lender that will vary depending on the lender, product or other permissible factors. The nature of any commission model will be confirmed to you before you proceed. If we receive a commission, this will not affect the cost payable by you.

THINK CAREFULLY ABOUT SECURING OTHER DEBTS AGAINST YOUR HOME.

YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBTS SECURED ON IT.

BUY TO LET MORTGAGES ARE NOT REGULATED BY THE FINANCIAL CONDUCT AUTHORITY.

EQUITY RELEASE: THIS IS A LIFETIME MORTGAGE. TO UNDERSTAND THE FEATURES AND RISKS, PLEASE ASK FOR A PERSONALISED ILLUSTRATION. CHECK THAT THIS MORTGAGE WILL MEET YOUR NEEDS IF YOU WANT TO MOVE OR SELL YOUR HOME OR YOU WANT YOUR FAMILY TO INHERIT IT. IF YOU ARE IN ANY DOUBT, SEEK INDEPENDENT ADVICE.


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