Heron Financial arranged a £328,000 mortgage at 80% LTV for joint home movers in West Sussex, one a finance professional, the other in project management, purchasing a £410,000 two-bedroom semi-detached house that the lender valued at £440,000. The £81,000 deposit came from equity rolled over from the sale of their previous property, with the positive valuation outcome giving the household £30,000 of additional equity buffer from day one. Heron Financial placed the case with Barclays on a fixed rate, and the mortgage completed in May 2026.
The clients
The clients were a couple in West Sussex, home movers buying a two-bedroom semi-detached house at an agreed purchase price of £410,000. One applicant works in finance; the other in project management. Both are paid through PAYE with steady evidenced income.
They were selling their previous property and rolling £81,000 of equity into the deposit on the new home. When the lender’s surveyor valued the property, it came back at £440,000, £30,000 above the agreed purchase price. The case landed at 80% LTV against the purchase price, and 74.6% LTV against the valuation.
The case at a glance
- Buyers: Joint home movers, employed
- Nationality: British
- Occupations: Finance professional + project management professional
- Property type: Two-bedroom semi-detached house
- Location: West Sussex
- Purchase price: £410,000
- Lender valuation: £440,000 (£30,000 above purchase price)
- Deposit: £81,000 from sale equity (approx. 20% of purchase price)
- Loan amount: £328,000
- LTV against purchase price: 80.07%
- LTV against valuation: 74.61%
- Lender: Barclays
- Repayment method: Capital and interest
- Completion: May 2026
The challenge
A clean joint home mover case looks comfortable on paper, and this one largely was. The interesting bits sit in three places:
80% LTV is its own pricing tier. Lender pricing improves in steps, typically at 80%, 75% and 60% LTV. The case landed at 80.07% against the purchase price, just inside the 80% LTV pricing band. A slightly bigger deposit, around £20,000 more, would have dropped the case into the 75% LTV tier, with meaningfully better pricing. The clients chose to retain that cash rather than stretch, prioritising liquidity for the move. That’s a reasonable trade-off, but worth understanding consciously rather than incidentally.
Positive valuation outcome. The lender valued the property £30,000 above the agreed purchase price. Lenders calculate LTV against the lower of purchase price and valuation, so the rate is anchored to the 80% LTV against purchase. But the borrower benefits from the additional equity buffer in the property from day one, useful headroom against future market movements and a confirmation that the agreed price wasn’t stretched.
Joint affordability for a £328,000 loan. On standard 4.5x lending, combined income of c.£73,000+ comfortably supports the loan. Finance and project management roles are both well-treated by mainstream lenders, with one likely consideration: finance roles often include meaningful bonus components, and how each lender treats bonus income can shift the affordability outcome. Project management income is typically more stable salary plus the occasional performance bonus.
Sale equity coordination. The £81,000 of equity from the previous property sale needed to flow cleanly into the new deposit at exchange. Chain timing, exchange dates and completion alignment all had to work in step.
Property type and location. A two-bedroom semi-detached house at £410,000 in West Sussex is consistent with current market values for the area, and the property type sits cleanly within mainstream lender criteria.
How Heron Financial approached the recommendation
The Heron adviser focused on three things: LTV positioning, lender fit, and product choice.
LTV positioning conversation. Heron Financial walked the clients through the 80% LTV vs 75% LTV trade-off explicitly, what each band would mean on the rate, and what stretching the deposit would cost in retained liquidity. The clients chose to stay at 80% LTV and keep the additional cash buffer, which was a reasoned decision rather than an incidental one.
Joint affordability check. The adviser confirmed how Barclays would treat both incomes, including any bonus elements in the finance applicant’s pay and any variable components in the project management role.
Sale coordination. The mortgage application timeline was aligned with the sale completion of the previous property, so the £81,000 of equity flowed cleanly into the new deposit at exchange.
Lender choice. Barclays was the right home for this case. Their pricing at 80% LTV, clean approach to joint employed incomes including bonus elements, and consistent underwriting on residential semi-detached purchases combined to produce the strongest overall outcome.
Product choice. A fixed rate gave the clients payment certainty in the early years of the new home, sensible at 80% LTV on a meaningful joint loan when the household has just absorbed the costs of moving.
The outcome
The mortgage completed in May 2026. The clients moved into their new home with:
A £328,000 mortgage at 80% LTV against the purchase price (75% against valuation)
A fixed rate on capital and interest repayment
£30,000 of instant equity from the positive valuation outcome
The full sale equity rolled cleanly into the new deposit
A retained cash buffer kept back from the deposit for post-move flexibility
What this means for buyers in a similar position
If you’re a home mover with sale equity to deploy, the LTV band you land in matters, and the conversation worth having is whether to stretch the deposit to drop into a better tier. 80% LTV is workable and widely available; 75% LTV typically gets you a meaningfully better rate. The trade-off is keeping less cash on hand post-completion. There’s no single right answer, it depends on your other savings, the rate difference on the day, and how much liquidity you want in the early months of a new home. A broker can model the trade-off on your specific numbers so the decision is informed. Separately: if the lender’s valuation comes in above the purchase price, the loan and rate are still anchored to the purchase price, but you get the additional equity buffer for free.
FAQs
What happens if the lender's valuation comes in higher than the purchase price?
Lenders calculate LTV against the lower of purchase price and valuation, so a positive valuation doesn’t reduce your loan or change your rate. What it does do is give you instant equity in the property from completion, confirm the agreed price isn’t stretched, and provide headroom against future market movements.
Is 75% LTV worth aiming for instead of 80% LTV?
Often yes. Lender pricing improves in steps, with 75% LTV typically a meaningfully sharper tier than 80%. If you can stretch your deposit just enough to drop from 80% to 75% LTV, and you don’t need the extra cash for post-completion costs, the rate saving usually justifies the additional deposit. A broker can model the specific numbers for you.
Can I use sale proceeds from my previous home as the deposit on the next one?
Yes. Sale proceeds (your equity after the existing mortgage is paid off) are the standard source of deposit for home movers. The sale and purchase typically complete on the same day, with the equity flowing through your solicitor to fund the new deposit. mainstream high-street lenders are typically materially sharper on rate. A broker who works across both can advise honestly on the right fit.
How do lenders treat bonus income for finance professionals?
It varies materially by lender. Some lenders use 100% of bonus averaged over the last two years (provided it’s evidenced through payslips and P60s). Others use 50%. Others apply different rules to discretionary vs guaranteed bonus. Finance roles often have meaningful bonus components, so lender choice can shift the assessed income, and the borrowing capacity, by tens of thousands.
How much deposit do I need for a £410,000 house?
At 90% LTV you’d need a 10% deposit (£41,000). At 85% LTV, a 15% deposit (£61,000). At 80% LTV, a 20% deposit (£82,000). At 75% LTV, a 25% deposit (£102,000). Larger deposits unlock better rates, but the trade-off is keeping less liquid cash on hand.
