Introduction
Purchasing a first home is a significant milestone, especially when the property is privately sold through personal connections. This case highlights how we helped first-time buyers in Petersfield secure an affordable and secure mortgage tailored to their needs.
The Scenario
The customers, first-time buyers, were purchasing a property privately from owners they knew. The property had previously been listed on the open market but didn’t sell, allowing for a private transaction.
Their key preferences included:
- 25-Year Term: This provided manageable monthly payments without extending the term unnecessarily.
- 5-Year Fixed Rate: They valued the stability of fixed payments to avoid needing to review their mortgage within the initial years.
- Deposit Contributions: The deposit was funded through a combination of personal savings and inheritances from both applicants’ families.
They also expressed interest in reviewing their protection needs closer to the completion of the purchase.
The Challenge
Key challenges included:
- Balancing Affordability and Term Length: Finding a mortgage that provided affordable payments while avoiding an overly long term.
- Privately Sold Property: Ensuring the transaction was handled efficiently despite the private sale structure.
- Combining Deposit Sources: Multiple inheritance sources and savings contributions required clear documentation to satisfy lender requirements.
The Process
Step 1: Understanding the Customers’ Needs
We conducted a detailed consultation to understand their financial situation, including their preferences for term length, fixed-rate security, and deposit contributions.
Step 2: Identifying the Right Lender
After evaluating several options, HSBC emerged as the best fit due to their competitive rates, suitability for first-time buyers, and streamlined processing for private sale transactions.
Step 3: Structuring the Mortgage
We structured the mortgage as a 25-year capital repayment loan with a 5-year fixed rate. This setup balanced affordability with long-term security, ensuring payments aligned with their budget.
Step 4: Supporting Documentation
Given the diverse sources of their deposit, we worked closely with the applicants to compile the necessary documentation, including proof of savings and inheritance, ensuring the application met lender requirements.
Step 5: Finalising the Mortgage
Once the application was submitted, we liaised with HSBC to ensure a smooth approval process and timely completion.
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The Solution
HSBC provided a tailored mortgage product that met the customers’ needs:
- Loan Amount: £240,000
- Product Type: Capital Repayment Mortgage
- Rate: Fixed for 5 years
- Term: 25 years
This solution offered predictable payments and affordability, allowing the buyers to secure their first home with confidence.
Why This Solution Worked
- Affordability: The 25-year term provided manageable monthly payments within their budget.
- Stability: The 5-year fixed rate ensured consistent payments, offering peace of mind during the early years of ownership.
- Flexibility: HSBC’s process accommodated the private sale and diverse deposit sources efficiently.
The Outcome
The buyers successfully secured their mortgage, enabling them to complete their first home purchase in Petersfield. Key benefits included:
- Predictable Payments: Fixed payments over five years provided financial stability.
- Personal Milestone: They achieved their goal of purchasing a property with meaningful personal connections.
- Seamless Process: The private sale and diverse deposit sources were managed without complications.
Closing Thoughts
Buying your first home is a landmark moment, and having the right mortgage solution can make all the difference. This case demonstrates how a tailored approach can simplify even complex transactions, helping first-time buyers achieve their dream of homeownership.
If you’re a first-time buyer or navigating a unique property purchase, contact us today. We’re here to provide expert advice and ensure you secure the best mortgage for your circumstances.
