Young couple purchase first home together at 94% LTV
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
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
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