| Loan amount | £154,000 |
| Purchase price | £170,000 |
| Loan-to-value | 90% |
| Property type | Two-bed flat |
| Location | Bristol (BS5) |
| Borrower | First-time buyer |
| Income multiple | 5x |
| Term | 30 years |
| Rate | 5-year fixed |
| Lender type | High street FTB |
The Story
A first time buyer in Bristol had found Fox Davidson on the internet after searching for 5 x income mortgages in Bristol. The client was a single applicant, first time buyer needing a mortgage of 5 x their annual salary. They had started their job only 4 months previously and had been declined already having tried to use an online mortgage/money supermarket. They wanted a more personable service.
The Challenge
As the client had only been in their job for 4 months and required 5 x income, the funnel was narrowing with only a handful of lenders who would be willing to offer a loan.
Given that they were a first-time buyer and needed a high loan to value at around 85% this added to the challenge.
The Solution
We advised the client to utilise a special lending scheme that allows clients to borrow enhanced income multiples when taking a longer-term fixed rate.
We had to ensure the client was happy to be locked in to a 5-year mortgage with the lender, but with rates looking likely to increase, they were adamant they wanted to fix and were happy to do so for 5 years or longer.
On this scheme we were able to secure 5 x income, which meant they could borrow an additional £16,000 compared to other lenders in the market, allowing them to purchase their first property and get onto the property ladder.
First-Time Buyer Mortgage Specialists
For more information on first-time buyer mortgages or to speak to us about general mortgage advice, please contact a member of the Fox Davidson team today, email enquiry@foxdavidson.co.uk or call us on 03300 100313.
Frequently asked questions
What is a high net worth mortgage?
A high net worth (HNW) mortgage is assessed under the FCA’s high net worth rules rather than the standard affordability test. It is available to borrowers with net assets over £3 million or annual net income over £300,000. Lenders read the net assets test literally and include the equity in your main home, and on a joint application only one of you needs to meet it.
How does HNW mortgage assessment differ from a standard mortgage?
HNW assessment is whole-of-wealth based rather than income-multiple based. Lenders consider total assets, liabilities, liquidity, income, and lifestyle costs, then negotiate loan size based on the overall financial picture.
What loan sizes are available with HNW mortgages?
HNW mortgages typically start at £1 million minimum and have no upper cap. Loans of £5 million to £20 million are routine for qualifying clients. Loans above £20 million typically involve syndicated lending or relationship-driven arrangements with private banks.
How long does an HNW mortgage take to complete?
HNW mortgages typically complete in four to ten weeks. Mainstream HNW lenders are at the faster end. Private bank cases involving committee approval, complex structuring, or offshore elements can take eight to twelve weeks.
All rates and terms are indicative and subject to individual assessment, lender criteria and property valuation. Your home may be repossessed if you do not keep up repayments on a mortgage.
First-time buyer mortgages with low deposit and 95-100 percent LTV options.