I recently helped a couple, who were new to the mortgage process, to navigate the property market and secure their very first home. These clients were first time buyers looking to purchase a flat in London worth £265,000. To do so, they required a mortgage of £210,000, however, they already had quite a lot of student debt working against them as well as very little employment history.
My key concern in this instance was assisting my clients with their first step onto the property ladder and ensuring they were happy with the result. Securing a mortgage can be difficult at any stage, especially when faced with lenders’ stringent criteria. Because of this, it was my job to ensure the process ran smoothly and my clients were aware of the best options available to them at all times.
Along with this, my clients were both in relatively new employment positions, with one having worked for just over a year and the other for only 3 months. This goes against the majority of lenders’ minimum requirement, which on top of their existing debt, made applying for a mortgage a little trickier – but not impossible.
My clients had received a gifted deposit from one of their parents, so they required a lender with as minimal upfront costs as possible, who would also be willing to consider an application with little employment history.
Luckily, my contacts with lenders across the market meant I was able to find one who would be willing to base my client’s affordability on their work contracts instead of any previous employment history. By doing so, we were able to ensure the arrangement fee was added to the loan to avoid any unnecessary upfront costs. This offer also came with no valuation costs, which was exactly what my clients had been looking for.
I was able to secure a very competitive 1.94% 2 year fixed rate for my clients, providing a very affordable and competitive solution for their requirements.