We were approached by a couple – first-time buyers who needed a mortgage to purchase a 3-bed house in Derby. The couple were buying the house from the husband’s parents who were gifting them 10% of the equity in the property rather than help them with a cash deposit.
This is known as a concessionary purchase which not all lenders will consider.
To add to the complexity of the case, the wife, who is Canadian, lives in the UK on a spouse’s visa which is not popular with many lenders - most prefer applicants with a permanent right to reside. However, she does have a permanent job as a shop assistant earning £12k a year. The husband is a self-employed delivery driver earning £25k a year.
We took the case to a high street bank which we know accepts concessionary purchases and will consider lending to applicants on a variety of visas.
Both the husband and wife have good credit profiles and could easily provide proof of earnings to support their mortgage application. The wife’s visa was also available for inspection but in this instance, it was not requested because her credit profile was so clean.
Subsequently a formal mortgage offer was issued to the couple at just over 4.5 times their joint income with no lender arrangement fee.
Here are the details:
Property value: £165,000
Loan amount: £148,500
Rate: 3.14% 2 year fixed rate
Term: 35 years capital & interest
Mortgage payment: £582 pcm
Lender arrangement fee: Nil
Consultant: Erin Gallacher, 01625 416392
11th September 2017