First time buyers £292,500 mortgage on purchase price of £390,000

Completion within the Stamp Duty holiday deadline at 1.86% interest rate

75% loan to value 5 year fixed rate advice to help achieve clients’ life goals

Our client

Our first time buyers clients were a couple looking to buy their first home together.

They were recently engaged and living apart, looking to purchase their first home together. Their plan was to move in, get married and sometime in the future have a family.

What was needed

The couple wanted to ensure they chose the right property and mortgage product to start the next chapter of their life together and have funds available for the future, including their wedding.

What was the challenge

The clients’ particular challenge was that they ideally wanted to complete before the Stamp Duty holiday deadline. However, their priority was to ensure they were able to purchase the best First Time Buyer property considering their future plans, with the most appropriate mortgage to help facilitate this.

How we provided the solution

The clients contacted Bethany Smith, Associate at Rose Capital Partners, to discuss their mortgage goals and associated life plans.

Bethany assessed different options for their possible mortgage deposit level, as the clients wanted to see how much cash they could retain to put towards their wedding.

When calculating mortgage options based on the range of deposit levels and different rates, the difference between 75% loan to value and a higher proportion was dramatic. The clients ultimately decided that they wanted to invest more money in the property to aid them with their plans in the long run.

In consultation with the clients Bethany advised a 5 year fixed rate mortgage, as the client’s plan was that it would likely be a while before they started a family, and so they wanted the security of static monthly payments for the foreseeable future so the clients could budget effectively. The purchase price of their new home was £390,000, with a mortgage amount of £292,500.

What was the rate

1.86% interest rate fixed for 5 years