First time buyer looking for high LTV for family home

THE SCENARIO

I was recently referred a foreign national client who wished to buy his first property for him, his wife and his young family. The property in question was valued at £435,000 and was in Henley-on-Thames, a highly desirable location, close to my client’s work for Formula 1. As a result of the high value of the property and his income, my client was hoping to secure 90% loan to value (LTV).

The high LTV was a challenge from the beginning as lenders will only really lend 65-70% LTV on residential property. Furthermore, it required borrowing over 5x his income, where 5x is usually the maximum a lender will offer. Thanks to our extensive network, I was aware of a lender who offered to lend up to 5.3x a client’s basic income, providing the income was over £75,000 – however, I knew this wouldn’t be suitable for my client.

My next option was a specialist building society who offers loans based on affordability, rather than income, ideal for my client’s situation. My client had tenure within his current position, a role which was also not too physically labour intensive, reassuring the lender he would likely remain in employment for a long time – a situation I was able to explain to the building society knowing they would be more than happy to consider the loan on this basis.

OUR SOLUTION

On approaching the lender, I was able to secure my client a mortgage on a 3-year mortgage at a variable rate of 3.29%, over a 37-year term. My client and his family were able to purchase their first family home in a beautiful location, giving them security as well as creating a UK footprint. Purchasing a home also enabled him to continue pursuing his career in Formula 1 as a foreign national living in the UK.

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