Raising additional funds for a new build purchase, following affordability wobble after exchange

The cost of living is impacting many, but don’t despair! Our team of experts are helping a variety of clients who find themselves in need of help to obtain funds quickly. The following case study sees how mortgage adviser Conner Williamson helped his clients generate more money from a new build purchase, having already exchanged contracts.

What was the situation?

I was approached by foreign national clients, residing in the UK with well paid jobs, including additional bonus and overtime income.  They came to me having already exchanged on a new build property, but found they couldn’t afford to complete on the new purchase due to the interest rates continuing to increase. This was because the interest changes had impacted mortgage lenders’ affordability calculations since the time of exchange when their initial calculations were done.

They were originally looking to borrow in excess of £520k. They wanted to keep their monthly mortgage payments as low as possible, but couldn’t afford to put down any additional money to try and make it work.

What was the issue?

At the time we first spoke the client wasn’t able to complete due to the issues highlighted caused from the higher interest rates. As the property was a new build from plans, they had exchanged the previous year when interest rates were much lower. Completion was approaching quickly so I needed to help the clients find funds in their final few weeks.

What was the process?

After assessing their situation, we agreed that the clients should speak with the developer to see if there was any leniency on moving to a smaller unit, that was more affordable. This way, they could afford the new mortgage payments and not lose the large deposit they already put down.

We were thrilled to have the developer agree, however with a very strict deadline so it was time for me to get to work. If this deadline was not met, the client would lose the deposit they put down at exchange. Having already sourced options that could work, I explored the most suitable option and spoke to the relationship manager at the chosen lender, explaining the full extent of the situation.

What was the solution?

I was able to secure them a mortgage offer within 9-days at a rate of under 5% which was competitive for the time. They were able to complete on the new purchase, and purchasing  this less expensive property gave them breathing room to get everything else in place also.

Lending solutions with LDN Finance

Are you purchasing property? We’re here to help you find a solution – no matter how complex your circumstances. At LDN Finance, our expert brokers have extensive experience in providing creative solutions to secure large loans for our clients.

We work closely with our trusted network of private banks and both high street and specialist lenders to arrange bespoke mortgage arrangements to suit your circumstances at competitive, market-leading rates.

Get in touch with us to organise an initial consultation.