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Our team were contacted recently by a young couple looking to purchase their first home together. Both husband and wife worked in skilled, professional occupations with reasonable expectations that their income would increase significantly over the coming years.
Despite that point, their bonus history for the last 2 years had fluctuated, and their target property was priced at £885,000 – their 15% deposit meant they required a mortgage loan of more than 5 times their combined total income. This can often be tricky to obtain in normal circumstances, but even more so with an inconsistent bonus history.
Further to this complication, the couple had also been gifted their deposit funds which again, some lenders are not particularly receptive to.
By considering each applicant’s total compensation package – inclusive of allowances – we were able to present a gross income figure that met a major high street lender’s maximum loan-to-income multiple of 5 times. The same lender was also able to work off the latest year’s bonus only, overcoming the issue of fluctuating income history.
The clients had approached some mainstream mortgage lenders prior to contacting largemortgageloans.com, with no luck. Given their respective careers, the couple were surprised to find lenders were not keen to provide the loan they wanted. Thankfully, our team have a high level of expertise on lender criteria and this was certainly a case that highlighted the importance of using a knowledgeable broker.
In the end, the couple were put on a 2-year fixed rate mortgage at the outstanding rate of 1.69%. A 30-year term was chosen to keep the monthly payments manageable. A fantastic result for the clients, which we strive for with every case.
|Rate:||1.69% - fixed for 2 years|
|APRC:||Overall cost for comparison 3.53% APR representative variable|
|Loan purpose:||First-time buyer purchase|
|Early repayment charges:||3% in year 1, 2% in year 2|
This case study is for information and illustration purposes only. It is not an offer, or suggestion of an offer. Each mortgage case is assessed on an individual basis and there is no guarantee that the solution described here can be repeated in the future.
Please note that this specific deal may not be available to – or suitable for – all customers, dependent on their individual circumstances. The rate quoted may become out of date at short notice and may not be available at the point at which customers enquire about it. This document may not contain all the information needed for customers to make a decision and they should seek advice.
Overall cost for comparison 3.53% APRC representative variable based on 2 years at 1.69%, 28 years at 3.75% and lender’s arrangement fees of £999. The actual rate available will depend on your circumstances. Ask for a personalised illustration.
Your home or property may be repossessed if you do not keep up the repayments on your mortgage. Changes in the exchange rate may increase the sterling equivalent of your debt.