Case Studies

£503K Residential Remortgage for Day Rate Contractor

Residential Remortgage for Day Rate Contractor with Debt Consolidation in Altrincham

Product Type: Residential Remortgage
Location: Altrincham
Loan Amount: £503,761
Term/LTV: 30-year term (extended by 6 months), 90% LTV

The Scenario – Funding Home Improvements and Managing Debt

Our client had significantly extended his residential property 18 months after purchasing it. However, when he attempted to remortgage or take a further advance to cover the costs, he encountered a roadblock. His existing lender based the loan-to-value (LTV) on the original purchase price, preventing him from securing the funds. As a result, he had to rely on unsecured borrowing, accumulating approximately £150,000 in debt and depleting his savings.

The Challenge – Overcoming Credit Score and Affordability Issues

Although the property’s new LTV had improved, the client’s high debt-to-income ratio resulted in a low credit score, leading to multiple declines from high street lenders. Another challenge was that the client worked as a day rate contractor, requiring a lender that would arrange a remortgage for a day rate contractor, assessing his income based on contract earnings rather than a traditional salary and would not reject the application due to credit scoring issues.

Our Solution – Finding the Right Lender and Restructuring the Loan

After multiple declines due to credit score concerns, NM Finance sourced a lender that could offer debt consolidation up to 90% LTV without double-counting the debts being repaid. This lender also did not rely on credit scoring and assessed affordability based on the client's contract day rate. During the process, the property was down-valued by the lender’s surveyor, requiring a mid-application loan restructuring. NM Finance navigated these challenges, securing an approval that reduced the client’s monthly outgoings by approximately £1,600. By supporting the client through to completion, we ensured he could successfully refinance his home while regaining financial stability.