Being a first time buyer can be exciting and challenging in equal measure - particularly if you have minimal knowledge of the different mortgage products available. Here at Enness, we often work with a number of entrepreneurs, business owners and self-employed individuals who are looking to acquire their first property.
In this case, we were approached by a British national and resident who had co-founded an electric car subscription business. Valued at £1.325million, the property in question was a beautiful semi-detached house in the leafy North West London neighbourhood of Kensal Rise. The client's key requirement was obtaining the most advantageous interest rate possible, which was reflected by the substantial deposit they put down - £475,000 (comprising 35% of the property price).
Every time a lender is analysing a mortgage application, they are looking at risk. Think of the risk/reward ratio as a seesaw: if you put down a small deposit against a mortgage, there is more risk for the lender and you. On the other hand, the more you can provide as a deposit, the lower the risk. Essentially, the risk that the lender places on a mortgage is always expressed in the interest rate your lender will offer you. Low LTV mortgages will usually come with lower interest rates. High LTV mortgages will usually come with higher interest rates.
What made this case tricky was the client's employment status. From a lender perspective, self-employed clients are less likely to have a regular and stable monthly income in comparison to those who are employed. Affordability is the king of mortgage applications, so we knew we had to approach a lender that would take a holistic view of the client’s situation.
At Enness, we have nurtured a wide network of lenders who specialise in assisting with cases like these. Our advisers operate exclusively in your interests to negotiate the very best deals and terms. The team’s understanding of your lender’s requirements will mean that your broker is ideally placed to find common ground and present the case that will get the lender to give the green light. As a result, we secured a fantastic 5-year fixed rate of 2.89% for the happy client.
If you would like to discuss your borrowing requirements in more detail, calculate theoretical scenarios or obtain rates for real-time situations, get in touch.
Information contained in our case studies is for market and illustrative purposes only. In some cases, these may be made up of multiple cases and are for illustrative purposes only.
Some case studies are made up of enquiries that have come into the business, not all business completes, and the posting of a case study does not represent a completed piece of business.