Case Study: Helping a First-Time Buyer Couple Achieve Their Dream Home
Background: Tom and Sarah (names changed for confidentiality), a couple in their late 20s, had been living at home for several years, saving up, and were eager to get onto the property ladder. They had a combined income of £60,000 and had managed to save a 10% deposit for a home in their local area. However, after speaking with their bank, they were left disappointed. The amount they were told they could borrow fell short of what they needed to afford a property in their desired location. Feeling disheartened but determined, they reached out to J Finance for expert advice.
Challenges: Tom and Sarah faced several challenges:
Income Multipliers: Their bank applied a fairly standard income multiplier, which limited their borrowing potential.
Credit History: They had limited credit history having not had credit cards or any other form of credit before.
Complex Circumstances: Sarah had recently started a new job, which some lenders viewed as less stable.
Limited Solutions: Like many first-time buyers, they were unaware of the full range of lenders and products available beyond the high street banks.
The J Finance Solution: At J Finance, we pride ourselves on taking a holistic approach to mortgage advice. Here’s how we helped Tom and Sarah:
Detailed Affordability Assessment: We conducted a comprehensive review of their financial situation, including their incomes, outgoings, and future plans. This allowed us to identify additional affordability options.
Access to Specialist Lenders: With access to a broad range of lenders, we easily found options that considered Sarah’s new job and their overall financial profile more favourably.
Credit File: The lack of credit is less of an issue to some lenders than others, so we chose wisely.
Maximising Borrowing Potential: We explored lenders offering enhanced income multipliers for first time buyers, enabling Tom and Sarah to borrow more than the initial offer from their bank.
Future-Proofing: We ensured the mortgage product selected was flexible and affordable, considering potential future changes, such as starting a family.
The Result: Thanks to our tailored approach, Tom and Sarah were able to secure a mortgage offer of £351,000—£80,000 more than their bank’s initial offer. This meant they could purchase a three-bedroom house in their desired area, complete with a garden and room to grow.
Not only did we help them secure the funds they needed, but we also supported them throughout the process, from the initial application to completion, ensuring everything went smoothly.
Tom and Sarah’s story is just one example of how J Finance helps first-time buyers turn their homeownership dreams into reality. By offering expert, personalised advice and access to a wide range of lenders, we empower our clients to achieve more than they thought possible.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.