Getting a Mortgage with 95% LTV and Unsettled Defaults

The Clients & Goal

• Joint Clients: A married couple (47 and 41 yrs old) with a high combined income (£90k + £50k) and 2 children.
• Goal: Purchase a 3-bed property in the South-East.
• Loan Required: Just under £500,000.
• Deposit: Only 5% (First Time Buyers).

The Challenge

• Credit History: Client 1 had extensive adverse credit: 2 CCJs and 9 Defaults, all over 24 months old (some satisfied, some unsatisfied). Client 2 had a strong credit profile.
• LTV Risk: Required a high Loan-to-Value (95% LTV) with significant adverse credit, which is often difficult for lenders.

The Solution

• Broker Expertise: David leveraged the clients’ strong joint income to secure financing with a chosen Specialist Lender (Precise Mortgages) that specialises in high LTV/adverse credit cases.
• Mortgage Detail: The lender approved the case for a 95% LTV mortgage despite the volume and status of Client 1’s adverse credit.

The Outcome

• Timeline: Case approved (including valuation) in just 2 weeks.
• Key Takeaway: Proved it is possible to get a large mortgage with a low 5% deposit and historical adverse credit.
• Client Success: The case completed, allowing the clients to move into their new home before Christmas.