Our client, a first-time buyer, approached us looking to buy a new build studio flat on a shared ownership basis. The studio flat was located in a highly desirable high rise development in central London and finished to a high specification.
To support the mortgage application, she was able to provide a 5% deposit, a gift from her immediate family, who live outside of the European Economic Community (EEC).
In order to fully understand her circumstances and the nature of the property she wished to purchase, we organised a number of meetings via video conferencing with one of our independent mortgage advisers, allowing her to fit meetings around her work and other commitments.
The challenges of this case:
Typically, shared ownership lenders require a minimum of 15% deposit in order to secure a mortgage. The few lenders who do have lower minimum deposit requirements don’t usually cover studio flats or deposits originating from overseas. This is because it can be harder to accurately verify the source of funds and satisfy the stringent anti-money laundering checks.
As an experienced, independent mortgage adviser with an in-depth knowledge of the lending market and strong professional relationships with a wide range of lenders, we were able to place the mortgage with a small building society.
The circumstances of the mortgage application were outside of the lender’s usual remit due to its high rise location, but after several discussions with our mortgage broker, the building society was satisfied that it was a viable lending opportunity due to the property’s desirable location and high specification. On this basis, they were happy to proceed.
The mortgage offer was issued to our client within 3 weeks of the application being submitted, allowing her to complete quickly on the purchase of her dream first property.