Fixed Rate Mortgage for First Time Buyer with Little Employment History

THE SCENARIO

I was recently contacted by a client who was a first time buyer looking to mortgage a property based in Hampstead, which was worth £900,000. My client had been employed for just 1 month at a well-known search engine company, of which he had previously been an employee 9 years ago. In the meantime, my client had been working abroad for different companies in various countries.

This was the first hurdle I faced for obtaining my client’s mortgage, as high street lenders normally require at least 6 months’ worth of employment history with an employer as well as a probation period, for an application to even be accepted – especially for customers taking their first step onto the property ladder.

The other unusual aspect to my client’s circumstance, was that his partner was giving him half the deposit for the property, although they were not married. This goes against general lending criteria when dealing with a house purchase, which normally requires gifted finance to be from a blood relative or spouse.

Despite this, we were able to get around these trickier details mainly due to the fact that his partner was going to be living in the same property. The lender also took into account my client’s credible history with this particular employer. Because of this, I was able to persuade a lender to consider the case simply by the partner writing a letter to state that he would be gifting the deposit, but would not be a party to the mortgage or its deeds.

Following this, I acquired a mortgage at a market leading rate. I was equally able to get the lender to draw down the funds on the same day – which is almost unheard of. This deal was over a 35 year term, meaning they wouldn’t have to worry about remortgaging for quite some time.

OUR SOLUTION

I secured a mortgage at a fixed rate of 1.64% with 75% loan to value on a 35 year term – a great result for my client and a great example of what can be achieved by a broker.

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