Many mortgage lenders and underwriters want applications to be relatively typical, in no small part because they perceive that the less risky a borrower appears to be, the more likely they are to pay the mortgage back in full.
This is not always the case, and CCJ mortgage specialists can attest that people who have unusual financial situations can often make for model mortgage borrowers.
There are a lot of situations that can make a mortgage unusual, from being self-employed to buying a home with a thatched roof, here are some of the factors that can lead to rather unique mortgage packages.
‘Grand Designs’ Mortgage
Many people want a home to call their own, but some take it a little further and want to design and build a home from scratch.
This is quite complex from a lender’s point of view although there are “help to build” schemes available that can help with this, as well as dedicated self-build mortgages.
These typically mitigate the risk of the building process by requiring that the original plot is bought using a deposit, with the funds for the house being paid in instalments once construction milestones are met.
Hero Mortgage
Whilst self-employment is an unusual mortgage that often requires a specialist package, there are other professions that can struggle to get approved under normal circumstances, at least for the income multiples they may require for a house.
Enter the ‘hero’ mortgage, a specialist mortgage package aimed at key workers such as NHS doctors, nurses, paramedics, teachers, police officers, firefighters and members of the armed forces, with higher income multiples available and more leeway for potential application enders such as debt management plans.
A Room Mortgages
In cases where the income of the household applying for the mortgage is slightly below what is required, certain mortgages can factor in rent from additional rooms and the income they could potentially generate.
