Case Study –Helping First-Time Buyers Secure a £1.28 Million Property Despite Affordability and Visa Complexities

The Situation

A barrister and their partner approached Henry Dannell to arrange the mortgage for their first property purchase together.

They had identified a property for £1.28 million and required borrowing at 80% loan-to-value.

The case involved several considerations. One applicant was in the UK on a Skilled Worker visa with approximately 18 months remaining, while the income and employment circumstances of both applicants needed to support the level of borrowing required.

The Challenge

During the mortgage application, the second applicant's job role changed. This affected the affordability assessment and meant the clients initially fell short of the borrowing required to complete their purchase. Alongside the employment change, the remaining term on the Skilled Worker visa also needed to be considered when identifying an appropriate lending route. The challenge was therefore to identify a lender and set of criteria able to accommodate the clients' circumstances while supporting the required borrowing at 80% LTV. Rather than treating the initial affordability result as definitive, we reviewed the applicants' circumstances in greater detail to establish whether an alternative approach was available.

The Solution

Our review identified that the first applicant's income and wider circumstances could potentially qualify for the lender's Premier offering. Under the relevant criteria, qualifying clients could be considered for an enhanced income multiple of up to 6.5 times income, subject to the lender's affordability assessment and wider criteria. Having established that the client's circumstances met the relevant requirements, we were able to progress the application under the Premier criteria and secure the level of borrowing required for the purchase. The clients also qualified for the lender's Premier mortgage pricing. Our involvement continued as the purchase progressed. During the application process, the available mortgage rate reduced from 4.77% to 4.60%, and we updated the product before completion so the clients could benefit from the lower rate. The result was a successful mortgage offer supporting the purchase of the clients' £1.28 million first home, despite the employment change, initial affordability shortfall and visa considerations. The case demonstrates the importance of looking beyond an initial affordability calculation. Where a client's professional, income and wider circumstances meet different lending criteria, understanding how those criteria apply can materially affect the options available. Please note: A mortgage is secured against your home. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it. Enhanced income multiples and mortgage products are subject to lender criteria, affordability assessment and individual circumstances.