Featured, Mortgage Guide
With an increased amount of time now spent at home, we’re finding more and more clients are looking to upsize. Our recent client was no different and in their quest for more space, they wanted to purchase a larger property. They decided to sell their existing property and release equity from the sale to cover the majority of the new property’s purchase price.
What made this situation complex for adviser David Ward-Smith, was the clients lack of household income. As a result he was unable to secure a regulated standard mortgage for the clients. Timescales were also tight – the clients had just three weeks until exchange and completion, or their vendor was going to switch to another offer that they had on the table.
To make matters worse, their buyer pulled out. This left them in a position where the chain was on the verge of collapse, and the purchase was about to fall through while they waited for a new buyer to be found. To avoid losing the house entirely, David knew that a short term bridging loan was the most suitable solution for his clients. He managed to get a binding offer within two and half weeks which allowed them to continue with the exchange.
David secured the required finance against the property that they were purchasing, at a rate of less than 0.5% a month. The lender was able to instruct an AVM (Automated Valuation Model) to save time and money for the client as this came with no fee for the clients to pay – which as this was an unexpected piece of finance they were taking out, every minute and penny counted, so this was an added bonus. During the process of application to completion, the clients accepted a new offer on their existing main residence and as such, expect to be able to pay back the bridging finance with some of the sale proceeds from the existing main residence.
The clients were thrilled to continue with the purchase of their dream home and complete the sale within three weeks, as initially requested.
David Ward-Smith
Julian is one of the mortgage industry’s true legends, following his passion through thick and thin to run our highly successful Specialist Finance division. Having always had an interest in property and initially part qualifying as an Architect, Julian decided to join the Financial Services industry in 1989, cutting his teeth at John Charcol in the early 1990’s. After opening their Guildford Office, Julian left to spend time assisting High Net Worth individuals with tax efficient investment schemes. In 2000 he jointly founded the boutique Mortgage Brokerage Cobalt Capital. As the managing partner of Cobalt Capital and at the centre of its growth, the company expanded to a peak of 90 staff and developed into one of the leading mortgage brokerages in London. With more than a growing interest in the specialist and commercial sectors of the mortgage market and a determination to obtain finance on the seemingly impossible, Julian decided to follow his passion and invest into Coreco, becoming a Director in 2010. His aim is to drive this business forward to become one of the strongest specialist finance teams in the industry, focusing on large residential loans for development/investment purposes and large property portfolios. Julian is also a proud member of the FIBA Executive Committee.
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