I recently arranged a mortgage at 95% LTV for a first time buyer, despite a few hiccups along the way.
My client in this case was in her 30s and worked as a healthcare manager. She was the friend of a happy former client of Enness who recommended our services to her. She had been renting in London for some years, and was now looking to buy a flat for the first time in the Croydon area.
She needed 95% LTV to cover the purchase, and it was a little tight on affordability. She had a student loan which she was still paying off, which came to light during the lender’s investigations. Since the Mortgage Market Review (MMR) of 2014, lenders go over a prospective borrower’s income and outgoings with a fine toothcomb, and any regular payments – such as student loan repayments – can put a strain on affordability.
One of the conditions of her buying the property was a lease extension, and the paperwork at the conveyancing stage became complex – particularly because the freeholder’s solicitor was not very forthcoming with the necessary documents. There was a delay while it was decided whether the buildings insurance should be included in the freehold, and before the draft lease was sent through.
Because the process took longer than expected, a problem with my client’s employment arose. Before she was due to complete she changed jobs, something which many lenders take issue with.
I had to act quickly to secure the documentation which would allow the mortgage to go ahead. I obtained a copy of her new employment contract, as well as confirmation from her employer of her salary, and sent these across to the lender.
This case was an excellent example of the ways in which a mortgage broker can offer holistic support throughout the application process and make it as easy as possible for the borrower – particularly when little unexpected hurdles arise, whether with paperwork, solicitors or employers.
I secured a 2-year fixed product for my client, and she has now happily moved in to her new home.