Vida Case Study: Gifted Deposit / Credit Default

Gifted Deposit Case Study
Situation

Mr K and Miss J wanted to purchase their first home together in their home town in North West England. They were both employed full time, Mr K had been working in the engineering sector for four years and Miss J in the healthcare sector for seven.

They had saved £10,100 towards the deposit and were being gifted £10,000 from Miss J’s grandmother who wanted to help the couple secure their first home.

The couple appointed a broker to help find the best mortgage for their situation. Miss J had a default on her credit report from a communications company, due to a missed payment by her ex-partner for whom she had taken the contract out. As a result, Mr K and Miss J struggled to find a high street lender who would consider their case. At this point their mortgage broker declared he was unable to assist any further.

Solution

Instead of losing hope the couple approached a new broker, Sam Hargreaves from The Mortgage Factory. Sam submitted a mortgage application to Vida Homeloans in January 2017. As Vida’s lending criteria allows for gifted deposits and takes into consideration applicants who have had one default in the last 24 months, Sam was able to secure a mortgage on the Vida 2 product range for the couple and they completed on their first home in early March 2017.

Sam commented, “I’m really pleased I was able to assist my clients and secure a mortgage for a young couple with Vida and make their first home purchase a reality. Lenders like Vida are helping to make this possible, with a refreshing view to underwriting and client assessment. Before Vida entered the market, I had looked at the options available to my clients and was unable to find a suitable mortgage with a reasonable interest rate. Vida’s common-sense approach to the clients’ previous credit conduct, considering a couple of minor oversights in the past for one of the applicants, meant that my clients were able to purchase their dream first home”.