Case Study: Helping a First-Time Buyer Purchase a Property From Her Mother

At Dudley, we pride ourselves on saying 'yes' to cases, whether simple or complex. Our commitment to flexible lending was acknowledged at the L&G awards, where we were honoured with the award for ‘Best Small Lender - Up to 100m Lending’ 

In this recent case, we applied that same flexibility, to help a client overcome a complex situation and secure them with a home with no issues.  
 

Our clients case

We recently provided a solution for a first-time buyer looking to purchase her mother’s home. The client looked to purchase the property for £200,000, while intending to have her mother continuing to live there.

She had currently been renting a home with their partner for the last five years and required a mortgage of £150,000 but didn’t have a cash deposit at her disposable.

To support her daughter’s purchase, the mother provided gifted equity by agreeing to sell the property below market value, effectively contributing £50,000 toward the purchase. 

With this case, it presented multiple complexities. The applicant was a first-time buyer with no deposit and proposed gifted equity from a family member.

Moreover, the applicants mother planned to continue living in the property after it was purchased.

Our solution

After reviewing the case, we determined that a standard mortgage wasn’t suitable because the client was a first-time buyer, and her mother’s continued residence post-purchase meant it aligned more closely with a regulated buy-to-let mortgage.

Using our flexible lending and human underwriting approach, we carefully assessed the unique family circumstances of the case and evaluated the applicant's full affordability based on their financial situation, rather than relying on rental income.

Ultimately, we were pleased to offer a regulated buy-to-let mortgage at 75% LTV.
 

 Cavina Harrison, Key Account Manager at Dudley Building Society added “The broker approached me after talking to several other lenders. This case made sense to me and we were able to apply common sense to the scenario and offer a solution. I spoke to the underwriter and we said yes the same day. We are very good at the complex cases as well as the simple ones. In this case we wanted to help the family secure their future and I am pleased we could help them achieve this”

Place your buy-to-let case with us 

Whether your client is a first-time landlord or an experienced investor, our flexible options, including regulated and expat buy-to-let, are designed with unique circumstances in mind, whether simple or complex. 

Contact our Intermediary Team on 01384 231414 or email at [email protected] to discuss your clients case with us.