A case study of how M8 Financial helped a homeowner

Acquiring finance for any project, whether that’s residential or commercial property investment or a separate investment idea, has becoming increasingly difficult in the past 20 years.  Banks and financial institutions have tightened lending criteria and the days of interest free mortgages, 100% LTV deals look to be over. On the plus side, interest rates are at historic lows and those old enough to remember the late 80s wince about the 15% APR mortgage rates so common then.

People still run into difficulties now too – with the stakes being arguably higher than the 80s because property is worth so much more now.

The average property price in 1987 was £40,000, in 2018, it’s £300,000.

M8 Financial often get asked to help people and with our three cornerstone principles being: Flexibility, Certainty and Speed, this comes greatly into play when homeowners hit financial straits.

Take this family who we helped recently.

Their home was under threat of being repossessed, a nightmare for anyone, due to an accumulation of missed mortgage payments. The issue had progressed as far as a sheriff’s date being set to recoup the arrears but we were able to get a postponement of the hearing and restructure that increasing debt.

This meant that the family could remain in their home and the stress of potential repossession was lifted.

We can’t promise fairy tale endings for everyone who contacts us – but if you’re facing financial problems, it’s imperative that you do something about this.

If you’re missing payments and estate agents, banks and solicitors are becoming involved, you need independent advice and help.

We’ve obviously anonymised parts of this case study for confidentiality but, in essence, all aspects of it are true.

M8 Financial can help you, whatever your circumstances.

Contact us today via email or telephone. 

 

Why financial footprints can be beneficial

When you walk on a beach, bare-footed or in shoes, if the sand is damp enough, you’ll leave a footprint.

When. you apply for a credit card, a loan, a mortgage, you’ll leave a digital footprint.

One is temporary, the other is semi-permanent, but the latter is vital if you are to acquire finance.

Imagine for a moment someone who wants to invest in say a HMO property of 8 flats in Glasgow and has a substantial cash deposit, a business plan to make capital gains but no financial footprint.

A credit search reveals no default on loans, mortgages or credit cards, in fact it reveals no credit history at all. That footprint could present a problem.

These are the type of cases we see regularly at M8 Financial; men and women looking to acquire a property investment, meeting and often exceeding the LTV criteria with large deposits, but without the credit history to satisfy many lenders that the deal is a viable one.

You need to build a good credit history and we can advise you on this in more detail too.

Here’s two simple first steps though for anyone looking for credit.

  1. Open a bank account. This is a first major step to getting a good credit score. Depositing money and setting up direct debits will demonstrate financial responsibility and save you time and money. One of the first questions on any finance application is often your bank details and length of time with them. Not having a bank account affects your ability to borrow.
  2. Get on the electoral register. Put simply, this proves to lenders that you live where you say yo do, but often it’s a step that people omit. It’s really easy to do too.

Remember your credit score is based on your credit history and if you haven’t got one, if your fiscal footprint is set in sand, you need to do something about it.

M8 Financial can help.