Mortgages for Stressed Clients

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Michelle Ling, mortgage broker

The vast majority of customers for mortgages are first time buyers, existing homeowners who want to upgrade to a new home or move, or existing home owners who want to buy an investment property. For mortgage brokers in Rangiora click this link. These buyers are generally fairly straightforward – around 60% of them deal directly with their bank for their mortgage and around 40% use a mortgage broker.

These clients will generally be accepted by the banks if they meet certain criteria that are pretty well publicized, around their combined annual income, the amount they want to borrow, the deposit that they have for the new house and their credit rating. With a client misses out on getting a mortgage then it will almost always be because of one or more of these four factors.

Some clients run into financial difficulties which can impact on their ability to make mortgage repayments, and this can be very dangerous financially for them because it may mean that they lose their house. Thanks a fairly hard-nosed about customers who get into arrears, and if the arrears have been for more than 3 months in the customer’s credit rating is damaged to the point that no Bank will want to do business with them.

There are mortgage brokers who will try to assist these customers, but because the circumstances can be rather dire then the cure that the mortgage broker proposes could seem very severe to the customer. Sometimes losing their house is an easier solution than alternative cures.

This situation often occurs during marital separation, when the parties are not talking to each other and not thinking clearly, and don’t take care of the mortgage repayments and other debts that are growing. This can be an unplanned tragedy that comes on top of the marital separation, particularly if the grieved party did not know that the other party was not looking after the mortgage repayments as they normally do.

This can be a difficult situation for a mortgage broker to sort out, but specialist brokers can also have specialist lenders on their books who are prepared to step on to help these types of customers, but obviously expecting a much higher interest rate in return. These specialist lenders are generally high net worth individuals who are prepared to take on added risk for increased return, and who also prepared to roll up their sleeves and get heavily involved in the deal. Visit this website for Te Awamutu mortgage brokers. They can for example offer to purchase the property of the homeowner and then rent it out to them temporarily while the homeowner sorts out their financial situation.

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