First Time Buyers 100 Percent Purchase Mortgage Application
- Product Type: Residential Purchase
- Location: Wolverhampton
- Loan Amount: £262,500
- Term/LTV: 35-year term
The Scenario – First-Time Buyers Ready to Buy With No Deposit
Our clients were first-time buyers with their hearts set on their first home, but without a deposit saved to put towards it. One was self-employed and the other employed, a mix that can make some lenders more cautious, so they needed a broker who could find a lender comfortable with both their circumstances and a no-deposit purchase.
The Challenge – Overcoming Credit Score and Affordability Issues
The majority of mortgage lenders require first-time buyers to provide a minimum deposit of 5% of the property’s purchase price. Although some lenders offer 100% mortgages, these products often come with additional lending criteria. One of the most common is a cap on how much you can borrow based on your current monthly rent, which can leave buyers approved in principle but unable to borrow enough for the home they actually want.
Our Solution – A No-Deposit Mortgage That Did Not Cap Their Borrowing
NM Finance successfully arranged a 100% mortgage for the clients through Melton Building Society, enabling them to purchase their first home without the need for a deposit. Unlike some other lenders offering 100% mortgages, we placed it with a lender who did not restrict the borrowing to the clients’ existing monthly rent, so the amount they could borrow reflected what they could truly afford rather than an arbitrary cap.
The lender also offered a competitive five-year fixed-rate mortgage, providing the clients with the reassurance of consistent monthly repayments and long-term financial stability as they took their first steps onto the property ladder, with no deposit needed.
Find out more about First Time Buyer Mortgages
Gregg Baker
Residential Sales Director
