First-Time Buyers Secure a 95% LTV Mortgage Despite Short UK Residency
Case Summary
A couple buying their first home required a £213,750 mortgage on a £225,000 property with only a 5% deposit. Although several factors narrowed their lender options and made the required borrowing difficult from an affordability perspective, careful lender selection enabled them to secure the full amount with a competitive high-street lender.
Purchase / Property Value
£225,000
Loan Amount
£213,750
Total Facility Amount
Deposit / Client Contribution
£11,250
Loan to Value (LTV)
95%
Finance Term
20 Years
Case / Finance Type
First-Time Buyer
Case Circumstances
Joint first-time buyers purchasing their first home together. Both applicants were employed with regular income and were approximately 50 years old. One applicant was a visa holder with less than three years’ UK residency and had only recently completed their probationary period. The applicants also had some minor credit issues in their credit history.
Main Challenges
95% Loan-to-Value
Only a 5% deposit was available, meaning the clients required borrowing at 95% LTV. This reduced the number of lenders whose criteria could accommodate the case.
Visa Status and Short UK Residency
One applicant was a visa holder with less than three years’ UK residency. Some lenders apply additional restrictions in these circumstances, further narrowing the available options.
Recent Employment History
Although both applicants were employed with regular income, one had only recently completed their probationary period. Employment history and time in role therefore required careful consideration.
Minor Credit Issues
The applicants had some minor issues in their credit history. While these did not necessarily prevent borrowing, they affected the range of lenders suitable for the application.
Affordability for the Required Loan
The most significant challenge was securing the full £213,750 required. Several mainstream lenders could not provide the necessary borrowing based on their affordability calculations, despite both applicants having regular employed income.
Browse other Mortgage Case Studies
Case Summary
After completing the refurbishment of a six-room HMO in South West London, the borrowers needed a long-term buy-to-let mortgage to exit their bridging finance. By placing the case with a lender better suited to specialist HMO valuation, a revised valuation of £880,000 was achieved and a mortgage offer of approximately £660,000 was secured.
Purchase / Property Value
£880,000
Loan Amount
£660,000
Case Summary
A property investment company secured a heavy-refurbishment facility to purchase and convert a £310,000 Hampshire property into a six-bedroom, six-en-suite HMO, with funding structured around the acquisition, works programme and projected £500,000 GDV.
Purchase / Property Value
£310,000
Total Facility Amount
£317,220
Case Summary
An experienced property company purchased a Hampshire property at auction for approximately £198,000 and secured a combined purchase and refurbishment facility to support its conversion into an HMO. Around £100,000 was allocated to the refurbishment works, enabling the project to proceed towards a planned buy-to-let refinance.
Purchase / Property Value
£198,000
Total Facility Amount
£236,000
Case Summary
Two directors purchased a £627,500 single-let investment property through a newly established SPV limited company. Despite the new SPV structure, one director being a first-time landlord and the property’s higher flood-risk profile, a suitable lender was identified and the clients were able to proceed with the purchase.
Loan Amount
£470,625
Purchase / Property Value
£627,500
Case Summary
A couple buying their first home required a £213,750 mortgage on a £225,000 property with only a 5% deposit. Although several factors narrowed their lender options and made the required borrowing difficult from an affordability perspective, careful lender selection enabled them to secure the full amount with a competitive high-street lender.
Loan to Value
95%
Deposit
£11,250
Case Summary
Two applicants on visas were looking to purchase a £250,000 property with a 5% deposit. Both had lived in the UK for less than three years, worked on fixed-term contracts and had limited UK credit history.
Loan to Value
95%
Deposit
£12,500
Have a similar scenario?
Let’s talk it through.
Let's Find the Right Mortgage for You
Amir Shojaee
Director and Founder of PBSBrokers
CeMAP Qualified Mortgage Adviser
At PBSbrokers, we offer a free initial consultation to review your income, deposit, affordability, credit profile, and mortgage objectives. Whether your case is straightforward or more complex, we'll help you understand the options that may be available and guide you through the next steps.