Helping a first time buyer who required a large income multiple mortgage

Helping a first time buyer who required a large income multiple mortgage

Article by Clair King Mortgage Adviser

What was the situation?

I was approached by a first time buyer – a teacher – who was looking for a large income multiple loan on an ex local authority flat with unusually high ground rent charges because it included utility bills.

Before I was bought on board to help my client, they had already begun their search for a mortgage but were recommended to LDN Finance by a friend for a second opinion.

What was the issue?

This case was complex because the client wanted to borrow almost 5 times their salary. Most mortgage lenders were offering significantly less than this. Additionally, the property was a 1 bed ex local authority flat in central London, but had unusually high ground rent payments to consider.

Ground rent is a payment made under the terms of a lease by the owner of a building to the owner of the land on which it is built. The amount of ground rent payable on a flat is important to lenders because this is taken into account as a monthly financial commitment, and so the higher the ground rent the less most mortgage lenders will offer.

As well as the complexities that came with the property type, the client had not been able to secure the funds they required as they had applied to a lender that wasn’t suitable for their situation. Subsequently, the mortgage had been declined after the valuation was carried out which had caused distress to my client.

What was the process?

During the initial delays in applying for the mortgage, the client nearly lost the property as their previous application had taken so long to process. However, once we were bought on board to help, I spoke to the estate agent and managed to convince them to give the client another opportunity at getting the mortgage agreed via myself.

With an enquiry like this, most lenders would decline this application due to the income stretch and ground rent issue. However, using my experience and product knowledge, I knew which lenders to approach who would consider will lending more money if certain longer term fixed rates were in place.

What was the solution?

With the estate agent and vendor agreeing to let me try, I spoke to the lenders and a mortgage application was submitted within 24hrs. They had the mortgage agreed and offered within 13 days!

The client is very thankful and is now about to take their first step onto the property ladder!


Lending solutions with LDN Finance

We’re here to help you find a solution – no matter how complex your circumstances. At LDN Finance, our expert brokers have extensive experience in providing creative solutions to secure large loans for our clients.

We work closely with our trusted network of private banks and both high street and specialist lenders to arrange bespoke mortgage arrangements to suit your circumstances at competitive, market-leading rates. 

Get in touch with us to organise an initial consultation.

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Our happy clients

Excellent and outstanding professional service from start to finish. From offering as many options as possible, to explaining to me very quickly what the benefits are and what I should really be thinking about moving forward. Thoroughly recommend.

Mr. M

July 2021

5 Stars! The LDN team supported us purchasing our family home, without their support and as an expat it would have been very difficult to obtain our new home in the UK. I would totally recommended them.

Mr. S

August 2021

Johnny Martin held our hands through the entire process calmly and professionally. Brilliant service, efficient and swift in response to everything. He made the entire journey uncomplicated even when the bank made it complicated. Highly recommended.

Mr. H

July 2021

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