Case Study –Residential Mortgage | Bad Credit Score

Value	£625,000
Loan Amount	£280,000
Location	Surbiton
LTV	44%
Achieved Rate	3.33%
Completed	October 2022

The Client

Our clients approached us after being denied lending by their bank for an undisclosed reason related to their credit scores. Both clients had a reasonable income that would have enabled them to borrow more than they needed. However, before we could assist them, we needed to understand the issues on their credit scores and determine if this was something we could help them overcome to secure the lending needed to purchase their new home.

The Solution

Our clients were able to obtain their credit reports, which revealed that one of them had taken out a payday loan four years ago, which was now negatively affecting their score. It is standard for lenders to review the past five to six years of an applicant's credit score. However, we were able to find a lender who only considered the credit score for the past three years, thus, not factoring in the previous transaction that had denied their borrowing.

The Henry Dannell Difference

We believe in always trying to find our clients a solution and as such, did not accept the initial rejection from the lender. In this case, our client had received bad advice and we wanted to do our best to help them recover from this mistake. We were able to find a solution that allowed them to buy a property as planned, rather than being left off the property ladder.