Our client was a first-time buyer and was really struggling to find a property within his original quoted mortgage budget. He had reached the end of his tenancy agreement and had saved up a good deposit, so he thought this was the perfect time to find a property to buy. The client was single with no dependents but had a low income, so after visiting his bank he discovered he couldn’t borrow what he wanted. Owing to this, he was unable to find any suitable properties and was ready to give up and move to another rental property. Luckily, he approached The Mortgage Library to see if we could help at all.
After researching a comprehensive range of mortgages, we advised him to consider a ‘Joint Borrower, Sole Proprietor’ Mortgage (also known as a guarantor mortgage). This means the lender would accept a second applicant on the mortgage application and use their income to increase the maximum loan; but they would not go on the title deeds so there are no tax implications. His Dad was a perfect candidate for this and agreed to go on the mortgage with him.
As the client was used to paying over £850 per month in rent, we knew the loan would be affordable moving forward. As anticipated, the client passed the Mortgage in Principle check and a few days later he had an offer agreed on a property, £30,000 over his original budget. We submitted the application and the offer was agreed shortly after.
