Applying for a mortgage can be stressful at the best of times, and even more so when your income situation doesn’t fit neatly into a lender’s boxes. This was exactly the case for one of our recent clients, who was on maternity leave and receiving Universal Credit.
Initially, the lender declined the application outright. Instead of simply discounting the portion of Universal Credit they felt unable to use, the lender chose to reject the case entirely. Understandably, this left our client disheartened, she had done everything right, but the system seemed to be working against her.
That’s where the value of a proactive adviser comes in. Our adviser took the time to have an in-depth discussion with the lender, asking for clarity and requesting a written statement confirming their position on Universal Credit income for future applications. This challenge prompted the lender to take a second look at the case.
Upon review, the lender acknowledged that Universal Credit could, in fact, be considered in part towards affordability. As a result, they were able to re-assess the application and ultimately issue a full mortgage offer.
This outcome highlights two key points:
- Not all lenders treat income sources the same way: some are more flexible than others.
- The right adviser can make all the difference: persistence, knowledge, and knowing how to challenge a decision can turn a “no” into a “yes.”
For this client, the result wasn’t just a mortgage offer, it was the reassurance that her family could move forward with confidence during a pivotal stage of life.
At Path Mortgages, we pride ourselves on fighting our clients’ corner and exploring every possible avenue. Because sometimes, the difference between a declined application and a successful mortgage offer is having someone who refuses to give up on you.
*Your home may be repossessed if you do not keep up the repayments on your mortgage*
