Case Study: Helping a Divorced Mum Get Back on the Property Ladder
Scenario
An applicant was going through a divorce, she wanted to purchase a home for her and her children. As main carer for her children, she chose to return back to work and take a part time role. With increased child care costs and a part time income, she failed a number of lenders’ affordability calculations. Her older brother offered to help her with the mortgage payments, so the applicant approached a financial adviser to find out if this was possible.
Solution
The financial adviser reviewed the applicant’s requirements and both her and her brother’s circumstances. It was agreed that her brother would join her on the mortgage as joint borrower, whilst only she would be named on the property deeds (sole proprietor). The adviser contacted Ingard’s Specialist Team to seek advice on which lenders would consider applications for joint borrowers/ sole proprietors. The team reviewed the application and advised that Metro Bank offered the best product to suit the applicant’s needs.
Metro Bank assessed the mortgage, considering the combined income and the expenditure of both households. The brother provided the deposit to his sister of 15% as a non-repayable gift. In the future when the sister looks to remortgage into her own name and her circumstances allow this, there will be no requirement for a transfer of equity.
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