First-time buyers changing jobs requiring a mortgage

The clients: Our clients wanted to purchase a new residential property and needed finance to do so. Applicant One had been a day rate contractor but had recently taken an employed position and had not even received his first pay slip. Applicant Two was currently in-between jobs so she could not provide evidence of any income. Both applicants were first- time buyers.


The property: Located in Surrey, the property is a four-bedroom semi-detached house valued at £915,000. The clients had a decent 40 per cent deposit so needed to borrow £549,000.


The finance: The clients required a 60 per cent loan-to-value (LTV) mortgage, from a lender who was willing to accept that one applicant had recently started a new job and the other had no income at the present time. The clients also required a mortgage term of 26 years, taking them up to their 75 th birthdays.


Key requirements:-

  • A lender who would be comfortable with one borrower recently starting a new job and both borrowers being first-time buyers.
  • The ability to have a term of 26 years, taking the clients to the age of 75.
  • A residential lender offering 60 per cent LTV on a high purchase price of £915,000.
  • The ability to add the lender arrangement fee to the loan.

After sourcing the whole mortgage market we identified a competitive rate which would allow the clients to borrow the full £549,000 on a repayment basis. The lender was comfortable with the new employment contract and the fact that both applicants were first- time buyers. The lender was also prepared to accept a 26-year term as both applicants had office-based work so could realistically work beyond normal retirement age. We were able to secure a residential mortgage on a market-leading two-year fixed rate.


As a bonus, the lender offered a free valuation and the ability to add any arrangement fees to the loan.


These features and benefits really appealed to our clients and we were able to submit a decision in principle and get approval from the lender before submitting the full application.


The application process: To support the mortgage application, the client who had recently started his new job supplied us with proof of identity, address and evidence of his employment contract. We were delighted to inform our clients that the lender had issued a formal mortgage offer for the full amount requested.


Property value: £915,000

Loan amount: £549,000

LTV: 60%

Rate: 1.14% 2-year fixed

Term: 26 years

Lender facility fee: £995 added to the loan

Monthly payment: £2035

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