The clients: A recently engaged couple looking to purchase their first home.
One of the applicants is in full-time employment as an administrator, the other works on a self-employed basis, as the sole director of a waste management company.
The property: The pair had fallen in love with a three-bed, semi-detached cottage in the Kentish Countryside.
The finance: As this was the couple’s first step onto the property ladder, the pair asked if they could come into the office to meet with us. Although the majority of our business is carried out over the phone, we are more than happy to hold face-to-face meetings.
After speaking with the couple, we came up with a few key points we needed to take into consideration before deciding which lender to approach.
- Source of deposit: Part of the deposit had been gifted to the couple by a parent. The rest of the deposit was made up from savings. Not all lenders accept gifted deposits.
- Credit history: Both applicants had missed credit card payments in the last two years. Although these had been paid, lenders prefer clean credit profiles.
- Employment: One of the applicants has only been self-employed for 2 years. Being self-employed for less than 3 years can limit the number of finance options available.
After assessing the options, we decided that the couple’s current account holder would be the best bank to approach.
We did our upmost to ensure the couple fully understood every step of the process, giving regular updates throughout.
An offer was received within three weeks and completed 8 weeks later.
Property value: £372,000
Loan amount: £333,000
Rate: 2.74% 5 year fixed
Term: 30 years capital and interest
Lender arrangement fee: £999
Mortgage payment: £1,360 pcm
30th January 2018