A Mortgage Solution for First-time Buyers: A LendInvest Case Study

For Intermediaries Only

The journey to securing a mortgage is complex, not just for the client but for the intermediary navigating a restrictive mainstream lending landscape. High-street lenders often get nervous around aspiring homebuyers with different types of income streams, the self-employed and credit histories with more than the occasional blip. 

At LendInvest, we believe that credit scores only paint one portion of the affordability picture, and that’s why we may be able to support aspiring homebuyers that the traditional lending model tends to deny.

Our research confirms the scale of the challenge: a significant 35% of aspiring homebuyers report that the fear of rejection is their single greatest barrier to applying, driven by the knowledge that high street models often lack flexibility.

This fear is well-founded, with 22% of applicants turned away due to complex income streams or employment status, resulting in clients feeling stressed, embarrassed and even ashamed. 

The research of 1,000 adults in the UK looking to purchase or remortgage a home within the next 5 years also revealed that 35% of applicants said that they have felt discouraged from even applying for a mortgage by high street banks due to their employment status or income streams. 

This data highlights the crucial role of a proactive mortgage advisor. A truly excellent broker must do more than simply advise; they must explore and champion every viable option available to their client.

In an environment where non-standard cases are becoming more common, brokers who know what specialist lenders like LendInvest can offer are best equipped to secure approvals and successfully serve the clients that the high street often turns away. 

How we Cut the Complex for first-time buyers

A broker approached us on behalf of their clients, first-time buyers who wanted to purchase their first home in Liverpool. With the broker having worked with LendInvest already this year, they knew that we take a different approach when looking at income, employment status and credit histories compared to high street lenders. 

The clients have an adverse credit history, including a large historic CCJ that was settled earlier this year. We don’t rely on credit scoring, so we were able to place them in our Support tier range of products. 

As for employment, one of the applicants is a teacher, making them eligible for our Key Worker products, which allow for a reduced interest rate. The other applicant is a mechanic, employed only for 5 months after a period of unemployment due to a job redundancy.  

While some high-street lenders won’t lend unless there is a minimum of 12 months of employment, we take income from applicants who are in a new role, as long as they can provide payslips and have a track record of earnings. 

We were also able to factor in 100% of their child benefits and disability living allowance (DLA).

In the end, we were able to secure a loan for £225k at 80% LTV, and because they took advantage of our fee-free product and dual representation, they were able to save additional costs and time. 

How our Residential Range may be able to help your clients

Designed with an understanding of real-life complexity, our residential mortgages truly reflect the scenarios people face. Just as in everyday life, more than one of these circumstances at a time. We can offer the flexibility needed to support your clients dealing with more than one of these situations simultaneously.

We can Cut the Complexity from:

• Self-employed

• Credit impaired

• Complex incomes

No matter your client’s income or credit history, we may have the right solution based on our credit criteria.

LendInvest plc is a public limited company registered in England and Wales (No. 8146929). Registered

Office: 4-8 Maple Street, London, W1T 5HD.

LendInvest Mortgages and LI Mortgages are registered trading names of LendInvest Loans Limited. LendInvest Loans Limited is authorised and regulated by the Financial Conduct Authority (FRN:737073). LendInvest Loans Limited is a company registered in England & Wales (Company No. 09971600) and is a wholly owned subsidiary of LendInvest plc.

Regulated lending is provided via LendInvest Loans Limited (Company No. 09971600). Unregulated lending is provided by LendInvest BTL Limited (Company No. 10845703) and LendInvest Bridge Limited (Company No. 11651573), which are wholly owned subsidiaries of LendInvest plc.

Borrowing through LendInvest and its affiliates involves entering into a mortgage contract secured against property. Your property may be repossessed if you do not repay your mortgage in full.