To the experienced wrappers. I’m in the process of qualifying buyers. My exit strategy is to be refinanced in 1 to 2 years. Will a single mother on a pension of 35,000 a year get refinanced if she keeps paying on time.
Thanks for your input.
Lawrence.
[8D]Hi Lawrence,
Depends on which financial institution will look outside the square.
Her ability to repay you will also go a long way to provide inertia to her claim for a loan in order to refinance. They can’t discriminate because she’s a single mum on a pension, they will generally look for another way to exclude her from their books (if she’s deemed a risk). You might need to get creative and show that she has a good credit rating and that the capital growth in the area has increased, thereby if her house (your wrap) is used as security for her loan (when refinanced) it will be worth something to them if they have to bail out fast.
I might be wrong on this, but I’ve read something similar to this in one of Margaret Lomas’s books (I think it was hers…)
Cheers
Sooshie [
]There are no problems, only solutions!
The lenders will look at things like family allowance….if it’s for older children and may cut out within a few years, then they will consider her risky, but there are many lenders with different criteria, so put out feelers with brokers in your area before you sign her up.[
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