Young couple purchase first home together at 94% LTV

Young couple purchase first home together at 94% LTV

06.06.18 | Written by: Charlie London

The client: A young couple looking to purchase their first home together. One applicant is already a homeowner and landlord with two rental properties, the other still lives at home with her parents.

The property:
The couple had their sights set on a two-bed flat in Surrey valued at £405,000. The flat itself is on the top floor of a 14-storey block and comes with secure parking.

The finance:
The pair had managed to save up £25,000 to use as a deposit, which meant they would need to secure a mortgage at 94% loan to value. The main challenge with this case was finding a lender which would accept an applicant with buy to let properties in the background.

The application process:
We decided to approach the intermediary arm of a well-known building society. This lender is currently offering very competitive home-buyer mortgage rates to landlords. A selection of the rates on offer also come with £500 cashback and a low arrangement fee of £495.

We asked the couple for three months’ bank statements, proof of address, income and identity to support the application. Within four weeks of submitting the case, a formal mortgage offer was received.

Here are the details of the offer:

Property value: £405,000

Loan amount:
£380,000

LTV:
94%

Rate:
3.65% 2 year fixed

Term:
32 years capital and interest

Lender arrangement fee:
£495

Mortgage payment:
£1,680

Consultant: Charlie London, 01732 471604

ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.