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Shawbrook throws a lifeline to Scottish foster carers

02 May 2018
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In March 2018, Shawbrook Bank’s Residential Mortgages team threw a lifeline to a couple struggling to secure finance because of the income they receive as foster carers. The Ayrshire based couple approached broker Financial Planning Options to raise the capital required to increase the floor space of their home by replacing an older style conservatory to create a large modern room with bi-folding doors that provided access to the garden.

A re-mortgage wasn’t the best solution in this scenario as the couple had an existing fixed rate on their first charge mortgage and would have been liable to pay an early repayment charge. The clients did not want to take out an unsecured loan either as the repayments were expensive, plus they had taken out several other shorter-term commitments over the last few years. As a result, the couple were looking for the lowest possible repayment to fall within their budget. In this case, a second charge mortgage would provide the best outcome for this couple’s circumstances.

Although lower rates were sourced by the broker, the featured lenders were not happy to include the couple’s foster care income. Shawbrook on the other hand, was more than happy to offer a second charge mortgage, as long as bank statements, remittance slips and a letter to confirm the foster care income could be provided, in addition to the couple passing Shawbrook’s other lending requirements.

David Orr, Financial Planning Options comments: “The service was fantastic from Shawbrook. Updates were always received within the same day and there was a seamless process once all the documents were uploaded. It’s always a positive when you can get to speak to the underwriter without any hassle and the front desk sales team assist with case updates. Thumbs up to Shawbrook for accepting an income source that other lenders are not keen on”. 

Jeremy Law, Managing Director – Residential Mortgages, Shawbrook Bank comments: “David from Financial Planning Options has extensive knowledge of the second charge mortgage market and was aware that Shawbrook accepts foster carer income. He used his experience to provide the client with the correct outcome for their needs and we are delighted that Shawbrook were able to assist. This case demonstrates once again that a Shawbrook second charge mortgage can provide a viable solution for foster carers, as well as being a great alternative to a re-mortgage”.

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