First time buyer’s £675,000 offer needed full £575,000 borrowing

Lender secured despite significant commission income and minimal track record

Fast 2-week mortgage offer turnaround to beat Stamp Duty holiday deadline

Our client

The client was a First Time buyer with an offer of £675,000 accepted on a property, with a deposit of £100,000 to make her purchase.

What was needed?

The client needed to secure the full £575,000 mortgage to ensure the purchase went through as she had no extra funds to add to her deposit amount. She also needed to complete the purchase as soon as possible to meet the deadline for the Stamp Duty Holiday which at this time was slated for the 31st of March 2021 (before the deadline extension was announced.)

What was the challenge?

A significant proportion of the client’s income consisted of quarterly commissions and most lenders were using no more than 50% of quarterly commission value when assessing income.

As the affordability was tight, a lender needed to be found who was willing to accept the use of the client’s commissions at least to the 60% level taking into consideration that the client had been in her job for less than 2 years. Most lenders, unable to ascertain the client’s income track record, were apprehensive about the sustainability of the commissions.

How we provided the solution

Paul Asare, Associate, assiduously researched the mortgage market and secured an excellent mortgage deal for the client in record time of less than 2 weeks. This enabled the solicitors to complete their due diligence and the client complete on the mortgage. An excellent achievement at a time when lenders are stringent on commission income assessments.

The client was pleased that she was able to secure the full level of borrowing she needed to purchase her property and that the mortgage offer was expedited so quickly.

What was the rate?