As a first-time buyer under 30, our client was eager to climb aboard the property ladder and purchase their first home in a prime city location. They had a strong income that relied heavily on bonuses, so the client’s family was providing the full deposit as a gift.
On paper, this was relatively straightforward but in reality, several factors made it challenging to secure the level of borrowing needed. These included the client’s reliance on bonus income, their status as a first-time buyer seeking the maximum possible loan, and the property’s proximity to commercial premises.
The client’s goal was clear. They wanted to secure the highest borrowing available based on their income so they could buy the right property immediately, without compromising on location or size. They needed certainty on what they could afford and a lender who would fully recognise their bonus income.
At the same time, the client’s income profile posed its own challenges. Many lenders will only take a percentage of bonus income into account when assessing affordability. For someone whose earnings rely heavily on bonuses, that can significantly reduce the amount they are able to borrow.
Before the client started viewing properties, we focused on clarity. We carried out a detailed affordability assessment to establish the true maximum borrowing available in the current market. This meant looking beyond headline salary figures and understanding exactly how different lenders would treat their bonus income and a fully gifted deposit from a family member.
By doing this work upfront, we were able to give the client a clear top-end purchase price. This gave them the confidence to start viewing properties seriously, knowing what was genuinely achievable rather than relying on generic online calculators.
The property they set their heart on was in a prime city setting, close to commercial premises. While attractive from a lifestyle and long-term value perspective, not all lenders are comfortable with such locations. Some take a more cautious view on properties near shops, restaurants, or offices which can limit options or reduce the amount they are willing to lend.
Using our knowledge of the market and our lender relationships, we set to work identifying the right fit. We needed a lender who would:
- Take 100% of the client’s bonus income into account
- Accept a fully gifted deposit
- Be comfortable with a property close to commercial premises
- Offer competitive, high-street pricing
We matched the client with a lender prepared to use the full bonus income in their assessment. This made a significant difference to the borrowing figure and allowed us to secure a mortgage at 5.5 times income on a two-year fixed rate. The lender also took a pragmatic view of the location, recognising the strength of the area.
Once identified, we moved quickly. We packaged the case clearly, addressed the gifted deposit, and pre-empted any questions around income and property type. As a result, we secured a formal mortgage offer in less than a week!
The outcome delivered maximum borrowing based on the client’s income, including 100% of their bonus secured on a competitive high street two-year fixed rate. The lender also accepted full use of the gifted family deposit and was comfortable with the property’s proximity to commercial premises.
The client was extremely happy with both the result and the experience delivered by Heath Mortgages. They felt informed throughout, with regular updates and reassurance at each stage, turning what could have been a daunting first purchase into a smooth and successful move onto the property ladder.
Are you a first time buyer looking for a mortgage? Contact us today and start your property buying journey.