High-LTV Residential Mortgage with Refurb Strategy
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The clients were a professional couple, both in full – time employment, with a combined annual income of approximately £205,000 including bonuses. They were already experienced property owners with a background in buy-to-let investment and refurbishment projects, including previous use of bridging finance and a refinance completed on a five-year fixed product in 2022.
They were now looking to purchase their main residential home together, targeting a purchase price in the region of £725,000 – £775,000. Their available deposit was approximately £75,000 (around 10%), with a further £25,000 – £30,000 allocated for stamp duty and legal costs, bringing their total planned equity contribution to just over £100,000.
The clients also had existing unsecured borrowing of approximately £15,000 – £17,000 on credit cards, alongside a small personal loan with monthly repayments of around £150.
Despite strong earnings and property experience, several structuring considerations needed to be addressed:
The main challenge was sourcing a lender who could support both:
A tailored mortgage strategy was developed based on affordability strength and property experience.
Key elements included:
Given the clients’ intention to improve the property and potentially extract equity later, emphasis was placed on lenders suited to “transitionary ownership strategies” rather than purely long-term residential borrowing.
A Decision in Principle was prioritised to support immediate property viewings.
The case was progressed rapidly, with documentation requirements confirmed and lender options prepared for submission.
A Decision in Principle was arranged within the following week timeframe, enabling the clients to proceed confidently with property viewings and early – stage offers.
The recommended structure provided both immediate purchasing capability and longer – term flexibility aligned with their refurbishment and value – add strategy.
This case stands out due to the combination of strong income, experienced property investors moving into a main residence purchase, and a clear value – add strategy.
It required balancing:
The case demonstrates how tailored mortgage structuring can bridge the gap between residential affordability and investment-led property strategies, particularly for clients with development intentions.
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