High loan to value purchase for daughter with father as guarantor

THE SCENARIO

The Enness team are often able to succeed where other brokers have failed. I recently worked on a case for two clients, a father and daughter seeking a high loan to value mortgage, who had previously used a family broker but found them unable to assist in this instance.

The father was self-employed and a 33% shareholder in the family business. His daughter, aged 24, worked for a large multinational company. The father explained he wanted to help his daughter get onto the property ladder, by acting as a guarantor.

The daughter was looking to purchase a £276,000 property with a low deposit. As such, she needed to maximise her borrowing with a high loan to value (LTV)—she was looking for something in the region of 90% LTV. My clients were also hoping to secure a long mortgage term to keep the monthly repayments low, as the daughter plans to eventually take over the mortgage repayments as her career progresses and her income increases.

However, as the father was 56 at the time of taking out the mortgage, lenders were hesitant about a long mortgage term. He would be 85 at the end of the mortgage, but obviously intended to retire before this at around the age of 70. We therefore needed to demonstrate the sustainability and affordability of the mortgage once he had retired.

I am experienced in cases such as this and quickly understood what they were looking to achieve.  Working with my clients to understand their bigger profile, including their background assets, income, and future plans, allowed me to present their case in the best possible light. I therefore contacted a niche lender I have an excellent relationship with and arranged a 3-year discounted variable rate of 2.35%, a 0.6% discount form this lenders’ standard variable rate of 2.95%.

I also had a productive conversation with my clients about the insurance Enness is able to arrange—as the daughter is young and in excellent health, I highlighted to my clients the insurance premiums would be very cheap.

Both father and daughter were extremely satisfied with my work on this case, and I look forward to assisting them again in the future.

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