Finance Category: Residential Mortgage
In the charming city of Exeter, Fox Davidson had the privilege of assisting a couple in achieving their dream of homeownership. What made their journey distinctive was the reliance on stipend income, a challenge that required a tailored approach and our specialised expertise as mortgage brokers. This case study unfolds the story of how Fox Davidson guided our clients through the complexities of stipend income to secure a mortgage on a beautiful property in Exeter.
Our clients approached Fox Davidson intending to buy their first home. They had a substantial deposit gifted from family but one of their sources of income was a stipend which presented a unique set of challenges. Traditional lenders often approach stipend income cautiously, considering it unconventional compared to standard employment income. The challenge lay in convincing lenders of the stability and reliability of their stipend income.
Fox Davidson initiated a thorough financial assessment. This involved delving into the specifics of or client’s financial situation. We aimed to present a holistic picture to potential lenders that showcased the couple’s ability to borrow comfortably for the next 5 years.
Fox Davidson collaborated closely with our clients to explore various mortgage products that would align with their needs. We were able to demonstrate a clear career path post stipend and demonstrated that the loan was almost affordable for the applicant with the traditional PAYE income.
Overcoming the challenges posed by stipend income
Fox Davidson initiated a thorough financial assessment. This involved delving into the specifics of our client’s financial situation. We aimed to present a holistic picture to potential lenders that showcased the couple’s ability to borrow comfortably for the next 5 years. Fox Davidson collaborated closely with our clients to explore various mortgage products that would align with their needs.
We were able to demonstrate to the lender a clear career path post stipend for applicant one and demonstrated that the loan was almost affordable on the second applicant’s income alone. Coupled with the low loan-to-value we made a strong case for lending despite the lender’s initial reluctance.
The journey with these clients demonstrated Fox Davidson’s commitment to understanding and overcoming the challenges posed by stipend income. After careful consideration, collaboration with specialised lenders, and a tailored approach to their financial situation, we successfully secured a mortgage for the couple in Exeter. We secured a competitive 5-year fixed rate with a high-street lender.
This case study exemplifies our dedication to providing personalised and specialised solutions, ensuring that even individuals with unconventional income sources can confidently pursue their homeownership aspirations. If you find yourself facing similar challenges or have unique financial circumstances, trust Fox Davidson to guide you through the mortgage process with expert knowledge and support throughout the entire process.