Extending mortgage terms
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THE OPPORTUNITY
A customer is coming to the end of their current rate and wanted to retain their existing loan balance while extending the mortgage term.
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THE CHALLENGE
Despite having a strong income, the customer's current lender was unable to support the request for a term extension.
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WHAT WE DID DIFFERENTLY
We assessed the case on its individual merits, taking into consideration the customer's low LTV, strong credit profile and proven repayment history. By applying our specialist expertise we were able to support lending at 7x the income.
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THE OUTCOME
£720,000 loan retained Property value: £1.6M
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DARE TO DELIVER
This case demonstrates the value of experienced underwriting, balancing risk and opportunity to provide the flexibility needed to achieve the right customer outcome.
Maximise borrowing for larger loan
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THE OPPORTUNITY
A customer found their ideal larger home and needed to maximise their borrowing capacity to secure the purchase after their existing lender declined the loan amount required.
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THE CHALLENGE
With multiple income streams, including four businesses, the case required a lender willing to assess the customer's full financial picture rather than rely on a standardised approach.
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WHAT WE DID DIFFERENTLY
We took the time to review income across their four businesses, enabling us to utilise 100% of available income and increase borrowing potential. We also worked closely with the adviser to understand existing loan commitments and ensure a more accurate assessment of risk.
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THE OUTCOME
£838,000 loan approved. Property value: £1.4M
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DARE TO DELIVER
Our flexible approach enabled us to provide a lending solution that met the customer's needs and helped them secure their dream home.
Self employed foreign national
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THE OPPORTUNITY
A self-employed limited company director and foreign national required a £489,250 loan (95% LTV) to purchase a £515,000 property.
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THE CHALLENGE
The broker initially approached another lender, however their policy capped lending to foreign nationals at £400,000.
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WHAT WE DID DIFFERENTLY
By taking a holistic view of the case, we were able to consider the customer's latest year of accounts, which showed improved business performance. We then applied our expert underwriting judgement to assess affordability and support the full loan request.
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THE OUTCOME
£489,250 loan approved. Property value: £515K
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DARE TO DELIVER
By taking a pragmatic approach, we were able to provide a solution that met the customer's borrowing needs where standard policy limitations had prevented other lenders from doing so.
First time buyers with visa status
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THE OPPORTUNITY
After several years of renting, a family was ready to step onto the property ladder in the UK.
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THE CHALLENGE
The application involved several complexities, including visa status, weekly-paid income and an overseas gifted deposit, making this a more complex case than many lenders would be willing to support.
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WHAT WE DID DIFFERENTLY
We assessed the case on its overall merits, considering the customers' established life in the UK, stable employment and affordability. Working closely with our Financial Crime team to validate the overseas gifted deposit, we were able to confidently support the application.
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THE OUTCOME
£484,000 loan approved. Property value: £510K
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DARE TO DELIVER
Our assessment showed the case sat comfortably within our risk appetite, enabling us to provide the 95% LTV mortgage the customers needed to buy their first home. It's a great example of how a considered approach can deliver positive customer outcomes.
Large loan later in life
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THE OPPORTUNITY
A couple wanted to purchase a new home in later life while also consolidating existing debt.
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THE CHALLENGE
The case involved multiple income sources both before and during retirement, alongside a high loan to income requirement that sat beyond the appetite of many other lenders.
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WHAT WE DID DIFFERENTLY
We looked beyond individual risk factors and considered the customer’s broader picture. Long-term employment stability and a proven history of managing borrowing commitments greater than the proposed mortgage payment provided us with a strong basis for supporting a 6x LTI.
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THE OUTCOME
£675,000 loan approved. Property value: £1.4M
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DARE TO DELIVER
Rather than assessing individual elements in isolation, we considered how the applicants' income, assets and future plans worked together. This gave us the confidence to support a complex later life purchase while balancing customer needs with a responsible approach to lending.
Raising capital for family needs
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THE OPPORTUNITY
A customer wanted to raise capital to support family needs, including home improvements and school fees for their grandson.
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THE CHALLENGE
The application was initially declined elsewhere due to a reduction in the family business [SO2.1]profits in the most recent year.
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WHAT WE DID DIFFERENTLY
We considered projected profits for the current year when assessing affordability. We also agreed to use income beyond age 80, as it was generated from a family business in which the customer was not involved in the day-to-day running.
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THE OUTCOME
£1.7M loan approved. Property value: £3.0M
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DARE TO DELIVER
By recognising the strength and sustainability of the customer’s income profile, we applied expert judgement and a flexible approach to deliver a successful outcome where other lenders could not.
Get in touch
Our cases highlight how Hodge supports borrowers in achieving their ambition of owning a home through flexible criteria and practical, common-sense lending. Chat to one of our team about your case today.
