Grace and Max: Helping apprentices on the ladder with revised lending criteria
Who did we help?
Grace and Max are both Level 4 apprentices at BAE Systems in Barrow, which they began four months ago after completing A-Levels at Furness College Sixth Form. Having met at school, they have been in a relationship for three years and were keen to move in together now they are earning a salary.
Grace and Max are both Level 4 apprentices and keen to move in together now they are earning a salary.
What did they need?
As born and bred Barrovians, they wanted to put down roots in the town they love by buying property rather than renting and had been putting small amounts of money aside to save a deposit. They knew it would be a stretch and were frugal in their property search, accepting they will be sitting on the floor for a while before they can afford to buy a sofa!
They found all first-time-buyer mortgages required a minimum 12 months' employment history.
Why were they facing challenges?
Only four months into their apprenticeships, the couple quickly realised that despite having a deposit and receiving a regular income, securing a mortgage would be very challenging. All the first-time-buyer mortgages they found required a minimum 12 months’ employment history, even though their calculations showed they could afford the repayments.
How did we help?
Fortunately, Grace and Max’s broker was familiar with Furness and spoke to our Intermediaries team to obtain the details of our new apprentice mortgage and crucially, its flexible criteria for buyers in our heartland, which includes a minimum three months’ employment.
Grace and Max were also pleased to discover we include overtime in the income affordability assessment for apprentices, which gave them more borrowing power than they thought they had. Suddenly, homes on the market they had previously ignored were now within reach.
Added to this, they would also receive £1,000 cash back upon agreeing the loan, which would give them the financial boost they needed to furnish their new home. No sitting on the floor to watch TV!
Our Intermediaries team liaised with our underwriters who reviewed the application and were satisfied Grace and Max comfortably met our criteria. The couple had their application for a loan accepted and were able to buy a two-bedroom property in Barrow with a 5% deposit.
Could we help your client?
Apprentices in our heartland now benefit from more flexible lending criteria and £1,000 cashback, as well as competitive interest rates and a minimum 5% deposit - enabling us to use our position as a local lender to help local people secure their dream home.
If our apprentice mortgages could help one of your clients, please contact our Furness Intermediaries team on 0800 988 1561.