Case Studies

How we can assist…

As a mutual organisation, we exist to look after our members.  We are here to help them achieve their hopes, dreams and aspirations.

Experience has taught us that our members circumstances differ.  That’s why, our individual approach to underwriting means we assess each applicants’ circumstances fully – ensuring that all those who wish to embark upon homeownership are considered fairly.

Each year we help people achieve their home ownership ambitions and we are pleased to share some examples of these below:
Student Guarantor - Case Study 1

Student Guarantor

With the costs of student accommodation increasing, it’s not surprising that more and more parents are investigating the possibility of helping their son or daughter buy their first home, to reside in whilst they undertake their studies.

Having consulted their mortgage intermediary, Sam and her parents applied for a mortgage with Penrith Building Society, in Sam’s sole name, with Mum & Dad standing as guarantors.

Now the mortgage is complete, Sam is settled in her new home and has commenced her degree in medicine. With the support of her parents, as guarantors, she now owns her first home. Convenient for Uni and a base for the long period of study ahead.

Foster Carers - Case Study 2

Foster Carers

We understand that foster carers provide an essential service to the families they support. We’ve recently approved a remortgage for a single parent, who worked as both a part-time administrator and a full-time foster carer. By taking into account his part-time employed earnings and his foster income, he could borrow enough to remortgage his home (with some capital raising) to buy out his ex-partner.

This meant that the children placed within the foster family had the stability they needed – not being subject to a home move at what was probably a difficult time.

Newly Self Employed

You can never quite tell when that dream home will come along. Dr W was a bit surprised when a property he had longed for for some while, suddenly came to market. The timing wasn’t ideal. Having spent nearly a decade working alongside his partners in practice, he’d decided to move onto pastures new only 3 months ago and had joined another surgery, as a partner.

By considering the historical profit generated by his new practice, and liaising with the surgery’s accountant we approved a large residential mortgage for Dr W, even though he was essentially a self-employed individual with only 3 months trading.

So, if you have a professional self-employed individual with a good track record, give us a call!

Concessionary Purchase - Case Study 4

Concessionary Purchase

We’ve all heard of the bank of mum and dad (or BOMAD!). Parental support when you are buying a property can come in many forms, a gifted deposit, the offer of collateral security or an interfamily sale, where the selling price is reduced by way of gifting equity for the benefit of the purchaser.

We were presented with a case, where the son had been given the opportunity to purchase a property from his father, with a chunk of gifted equity – essentially making it a concessionary purchase. We obviously needed the transaction to go through at full market value and needed some additional indemnities put into place, but, we were happy to approve the case based upon the scenario presented. Good luck in the new home Mr H!

Credit Issues - Case Study 5

Credit Issues

We know that bad things can happen to good people. Miss M & Mr J were keen to purchase a new home and sell their current property as their family had expanded and their currently property was a bit of a squeeze. Having approached their current lender, they were disappointed to discover that the financial problems they had experienced 3 years ago were still being taken into account and they were declined for their new mortgage.

As we have the opportunity to consider a case in depth, we asked the applicants to work with us. They provided supporting documentation to show the circumstances surrounding the short term ‘blip’ on their credit profile. Based upon the evidence provided, we were happy to approach our mortgage indemnity insurers to consider the case. They agreed to provide cover and we approved the loan at 85% LTV.

Self Build - Case Study 6

Self Build

For many years we have supported borrowers with their self build projects. From purchasing the plot to raising funds to finish the final fix, we can assist. When Mr and Mrs C approached us, via their mortgage broker, they had almost finished their build – but had depleted their funds. They had also accumulated some unsecured borrowings and were concerned about how they would be able to finish the build.

Mr C, a self-employed builder had seen his income reduce in the last tax year as he had invested time on his own build, in preference to paying someone else to do the work. This meant that affordability could have been a problem.

We worked with the mortgage broker, and the applicants’ accountant, assessed the position of his previous earnings and obtained a projection for this year – and the numbers worked! This meant that we could help the applicants settle those bills and complete their build.

Call Us at Penrith Building Society

Need to know more? Give us a call on 01768 863675