Persistence Pays Off On Difficult Mortgage Applications

There are some difficult mortgage applications where banks say “NO” and other mortgage brokers give up.

It’s at times like this that the specialist non bank brokers really earn their keep.

Maree’s Finance Was Not Easy

Maree approached us after almost giving up on her home ownership dream – we were the last resort.

She needed to obtain finance to purchase a rent-to-own property which they had lived in for the past 5 years. She had saved up $22,000 in rent credits which she would lose if she could not get finance approved to purchase the house.

Maree, her partner and 6 kids were on the verge of being homeless.

Her situation was far from good!

She had 7 outstanding debts with interest rates from 20% to an astonishing 624%, her account conduct was poor with constant OD’s in her bank account, she had a less than average credit score of 400 with 2 defaults meaning she had bad credit and the house was in need of some overdue maintenance.

But there were some positives too – she was purchasing the house at well below the current value and she had a deposit of over $50,000, made up of her rent credits, KiwiSaver and the HomeStart Grant which she was entitled to.

We Could Have Given Up!

While we are known for doing the difficult mortgage applications, this was not easy at all.

It was definitely going to need to go to a non bank lender but even then there were minimal lenders that would consider this.

We took her application to seven non-bank lenders and six turned her down but one said “we will consider this” and they eventually approved the application.

The lender understood the negative’s with Maree’s situation, but also considered the positives.

They even agreed to consolidate the other debt that Maree had which will certainly help her financially.

The finance was approved at 6.55% which is higher than the bank rates but it could have been a lot worse.

What was extremely satisfying was Maree got her home and now with everything tidied up the plan is to ensure that she manages her finance well so we can refinance the mortgage to a bank within the next 2 years and therefore get onto the lower bank home loan rates.

She is focused to make sure that she sticks to a budget too and has set herself up with some budgeting software too.

What’s Your Story?

Not everyone can get bank finance.

There are often reasons that your situation does not quite work, and it’s these situations that require a specialist non bank broker.

We are always willing to listen and help if we can.