First time buyers’ £312,650 mortgage on purchase price of £369,000

Complex share distribution income risked affordability refusal

Brokers direct relationship with underwriter saved the day

Our client

Our clients were first time buyers looking to buy a property in East London, wanting to move out of living with their parents.

What was needed?

The clients had been saving hard for a deposit for some time and with the easing of Covid restrictions were able to start searching for their ideal first property. Suitable flats in their price bracket in the location they were seeking were in short supply and much sought after. This meant they had to move fast on finding the right one and securing a mortgage.

The clients found a suitable flat in Leyton, East London, and agreed a purchase price of £369,000.

What was the challenge?

 One of the clients worked for a start-up who received part of his salary every quarter as a share distribution that he cashes in simultaneously.

 The challenge was to find a lender who would consider his total compensation package for mortgage affordability purposes including the share distribution.

How we provided the solution

Mike Brooker, Associate Director, took on the client’s case and ascertained what the clients’ mortgage goals were.

As a result of Mike’s relationships with lenders, he was able to speak directly to an underwriter and explain how the client’s remuneration structure worked.

Consequently, the lender agreed to consider the share distribution when assessing the clients’ mortgage affordability, so they were able to obtain the £312,650 mortgage needed to purchase their first home together.

The clients were thrilled as it was a relief to secure their first home after much saving and searching and to be able to live independently from their parents.

What was the rate?

The first time buyers’ mortgage interest rate was 1.74%.