Unlocking Homeownership

Who did we help?

Tilly and Nick are both in their late 20s and had been living with Tilly’s parents in Lancaster for several months. Tilly is an IT Manager and Nick is a newly-qualified teacher, having left his previous job two years ago to retrain. He started his first teaching job in April.

What did they need?

With Nick back in employment, the couple were desperate for their own home, having given up their rented apartment to help with money when Nick began his studies to become a PE teacher. A new build development of three and four bedroom homes was under construction near where they used to live and they’d spotted a £300k property that would suit their needs both now and in the future, when they want to start a family.

Why were they facing challenges?

Tilly and Nick had been trying to save money for a deposit in an ISA but it had proved a slow process due to Nick’s career break. Both sets of parents agreed to gift them £10k each to help, which amounted to just over 5% of the value of the house they had their heart set on.

While Tilly earns a healthy salary and Nick’s financial prospects are promising thanks to his postgraduate certificate in teaching (PGCE), the couple were also worried about being able to cover all their outgoing expenses when they moved from Tilly’s parents’ house. They knew they’d need to furnish the property and they wanted to continue saving to support their aspirations to start a family in a few years’ time.

How did Rate Reducer help?         

The couple’s broker, Mark from Mortgage Pathways had previously spoken to Furness Building Society about their Own New products and knew they’d be perfect for buyers facing challenges around deposit amount and short-term affordability.

With Tilly and Nick’s housebuilder, Bellway, providing a 5% contribution through the Own New scheme at their Staverton Lodge development, the couple became eligible for a two-year fixed mortgage at 95% loan-to-value. Mark therefore spoke to Furness’ Business Development team who liaised with the underwriting team to discuss the case.

The underwriters were comfortable that Tilly and Nick’s current financial position met the necessary affordability criteria – both now and at the end of the initial 2 year term. But they were further reassured knowing Nick’s salary will have likely increased during this time which would alleviate any financial strain on the couple caused by the conclusion of the initial fixed period.

If a Furness Rate Reducer mortgage could help one of your clients, please speak to the Furness Intermediaries team on 0800 988 1561 or speak to one of our Business Development Managers.

Consider getting independent financial advice before making any financial decisions on whether Rate Reducer is right for you. Your home may be repossessed if you do not keep up repayments on your mortgage, equity loan and other loans secured against it.