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Shawbrook solves borrower’s credit issue with second charge loan
The client contacted their broker Phillips Clark needing to raise £27,000 as they were looking to clear their unsecured debt and obtain funds for home improvements.
The customer had a fixed rate on their mortgage with another lender, so they did not want to remortgage, and had only been in their current job for just over six months.
Due to the client’s varied income being affected by month-to-month commission payments, a pragmatic lending approach was needed.
Shawbrook’s residential mortgages team agreed to a further borrowing of £30,000 at an LTV of 63.55%.
However, the customer was unable to produce a P60 due to the fact that they had only been in their current position for a short period.
Despite this, Shawbrook was pragmatic and analysed the client’s previous three payslips and found that they received substantial commission on a regular basis and felt comfortable in proceeding with the mortgage.
The bank used the lowest payslip amount to ensure that the customer could comfortably afford the loan should interest rates rise in the future.
Andrew Watson from Phillips Clark said it was impressed by Shawbrook’s progressive, ‘can-do’ attitude.
“The customer didn’t want to disturb the current low interest rate they had on their existing mortgage in order to raise the additional funds, and it was more cost effective to raise a smaller amount on a slightly higher rate than remortgage and have to repay ERCs.
“Shawbrook was open to this approach and understanding of the customer’s personal situation, offering interest rates and a product which suited their individual needs.
“The end result is a satisfied customer, with Shawbrook consolidating their monthly outgoings into one payment and reducing their outlay by £574 per month.”
Maeve Ward, managing director of Shawbrook residential mortgages (pictured above), felt this was a perfect example of the case-by-case lending decisions it makes.
“Rather than be put off by the client’s inability to produce a P60 or their fluctuating month-on-month income, we took a measured approach and were able to get comfortable with offering the £30,000 needed.
“The customer now has the loan they required without having to remortgage expensively, resulting in a positive outcome our teams can be proud of.”
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