A professional couple earning a high combined income struggled to save a large deposit due to high rental costs and existing unsecured debts. We helped them secure a specialist high LTV mortgage requiring just a 1% deposit to purchase their first family home outside of London.
The Challenge
The clients faced several key hurdles in securing the required borrowing:
- Low Deposit Availability: The clients had only a 1% deposit, making standard mortgages unattainable.
- Monthly Financial Commitments: High rental outgoings of nearly £3,000 per month and unsecured debts severely restricted their capacity to save.
- Strict Affordability Constraints: Mainstream lenders were hesitant due to the high loan-to-value ratio and existing credit commitments.
The Strategy
To structure a deal that met the clients’ needs, we leveraged our network of specialist lenders:
- Specialist Lender Alignment: We sourced a first-time buyer product that specifically caters to buyers with low deposits but high and reliable incomes.
- Underwriting Preparation: We conducted detailed affordability calculations and prepared comprehensive documentation to satisfy the lender’s underwriting criteria.
- Expedited Approval: We secured an Application in Principle (AIP) within 24 hours of submission.
- Cost-Effective Packaging: We secured a 5-year fixed rate exceeding £400,000, incorporating no lender fees and a free property valuation to minimise upfront costs.
The Results
- Total Loan Amount: >£400,000
- Loan-to-Value (LTV): 99% (1% deposit)
- Term: 5-year fixed rate
- Key Outcome: The clients successfully purchased their first family home without waiting years to accumulate a larger deposit.
Why This Matters
For first-time buyers trapped in high-rent cycles, saving a large deposit can seem like an impossible hurdle. Access to high LTV products allows families to step onto the property ladder much sooner. While this case focused on a first home purchase rather than the need to raise capital for property investment, our bespoke structuring ensures that all clients can access competitive rates and minimise their upfront expenses.
Speak to a Specialist
Ready to step onto the property ladder with a low deposit? Book a consultation with our team today.