Mortgage agreed for clients buying new home after existing lender declined application to port their mortgage because of late payments

Client profiles

Our clients were looking to purchase their next property after having an offer accepted.

The challenge

The clients needed a new mortgage after being declined for a port and top-up with their existing lender.

During the process, it became clear that one of the clients had a default showing on their credit report. This immediately narrowed the pool of available lenders, with many declining the case on that basis.

After further investigation, we established that the default had arisen following a change of provider under a lease agreement, combined with the client changing bank accounts. As a result, two payments were missed, and the agreement was passed to a debt recovery company without the client’s knowledge. 

Timing was important because the clients had already had an offer accepted and were struggling to find a lender willing to consider the case.

How Trinity Financial helped

After the clients came to us through one of our largest introducers, our mortgage expert Jordan Maynard, worked closely with them to fully understand the background of the default and gather evidence showing the full payment history.

We also identified that waiting a short period before submitting the application would improve the case significantly, as some lenders would reconsider once the default reached three years from registration. We therefore advised the clients to wait two months before applying.

At the same time, we strengthened affordability by including one client’s second job on a zero-hours contract. To support this, we provided 12 months of payslips to the lender.

Although the lender we submitted the application to initially declined the case, we discussed the background in detail with them and explained exactly how the default had arisen. Following this, they were prepared to reconsider the application.

The result

We secured an Agreement in Principle with Accord and submitted the mortgage application for the clients’ onward purchase. The mortgage was arranged on a full capital repayment basis at a rate of around 4.75%.

Outcome for the clients

• New mortgage secured with a large building society
• Capital repayment mortgage arranged
• Fixed rate of around 4.75% achieved
• Case progressed despite a historic credit default
• Evidence provided to explain the circumstances behind the default
• 12 months’ payslips used
• Up to 10% of the mortgage could be overpaid each year without charge
• Clients able to move forward with the purchase of their next property

Speak to a Trinity Financial adviser today

The mortgage market moves fast — and the right advice can make a significant difference to the rate and deal you secure. Get in touch with our team to discuss your options.

Call Trinity Financial on 020 7016 0790 to secure a fixed or tracker rate mortgage, book a consultation, or use our appointment calendar

The information contained within was correct at the time of publication but is subject to change. It is for general information purposes and is not advice.

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