Obtaining a FTB mortgage with 1% deposit for clients first family home

In the dynamic world of property finance, innovative mortgage products are constantly being developed to assist first-time buyers in overcoming the barrier of high initial costs. At Diamond Property Finance, we help clients navigate these opportunities to turn their homeownership dreams into reality.

Case Profile:

Our clients, a couple with a combined income of £150,000, were eager to purchase their first family home just outside of London. Despite their substantial earnings, high rental costs of almost £3,000 per month and existing unsecured debts significantly restricted their saving capacity. They found themselves challenged by the typical deposit requirements and struggled to secure the necessary funding based on their financial profile.

Solution:

At the opportune moment, one of our lending partners introduced a first-time buyer (FTB) mortgage product requiring just a 1% deposit, perfectly suiting our client’s situation. Recognising the match, we promptly engaged with the lender to thoroughly assess our clients’ affordability. Our detailed calculations and diligent preparation with underwriting led to a successful affordability assessment.

We quickly secured an Application in Principle (AIP) within 24 hours of submission. After gathering and finalising all necessary documents, our clients were approved for a five-year mortgage exceeding £400,000 with a fixed rate. This package also included the bonus of no lender fees and a free property valuation, reducing the upfront costs for our clients significantly.

As a result, our clients were able to purchase their desired family home, provide individual rooms for their children and finally achieve their goal of property ownership.