Heron Financial arranged a £297,000 mortgage at 59% LTV for joint home movers in London, one a sales leader, the other in a utilities technical role, purchasing a £500,000 two-bedroom purpose-built flat that the lender valued at £625,000. The £202,000 deposit came from equity rolled over from the sale of their previous property, with the strong valuation uplift creating instant equity from day one. Heron Financial placed the case with Skipton Building Society, and the mortgage completed in May 2026.
The clients
The clients were a couple in London, home movers buying a two-bedroom purpose-built flat at an agreed purchase price of £500,000. One applicant works in sales leadership; the other in a utilities technical role. They were selling a previous property and rolling £202,000 of equity into the deposit on the new flat. When the lender’s surveyor valued the property, it came back at £625,000, £125,000 above the agreed purchase price.
A positive valuation isn’t uncommon in cases where the buyer has agreed a strong deal, comparables have moved since the offer was made, or the seller is motivated to complete quickly. For the buyer, it’s a quiet win, the LTV against valuation is meaningfully lower than the LTV against purchase price, and there’s instant equity in the property from completion.
The case at a glance
- Buyers: Joint home movers, employed
- Nationality: British
- Occupations: Sales leadership professional + utilities technical professional
- Property type: Two-bedroom purpose-built flat
- Location: London
- Purchase price: £500,000
- Lender valuation: £625,000 (£125,000 above purchase price)
- Deposit: £202,000 from sale equity (approx. 41% of purchase price)
- Loan amount: £297,000
- LTV against purchase price: 59.48%
- LTV against valuation: 47.58%
- Lender: Skipton Building Society (Skipton Intermediaries)
- Repayment method: Capital and interest
- Completion: May 2026
The challenge
There’s a useful set of points sitting inside this case.
LTV at 59% against purchase price. Lender pricing improves in steps, typically at 80%, 75% and 60% LTV. The case landed at 59.48% against the agreed purchase price, dropping it just inside the 60% LTV pricing tier, the sharpest band on most lender ranges. The strong sale equity deployment got the case there.
LTV at 47.58% against valuation. When the lender’s valuation comes in higher than the purchase price, the LTV against valuation drops accordingly. Lenders calculate LTV against the lower of purchase price and valuation, so the rate is still anchored to the 60% LTV pricing tier, but the buyer benefits from the additional equity buffer in the property from day one.
What happens with a positive valuation. A positive valuation doesn’t reduce the loan or change the rate (since lenders price against the lower of purchase price and valuation), but it does confirm the agreed price isn’t stretched, gives the borrower instant equity, and provides headroom against future market movements. The opposite, a down valuation, is the bigger risk to manage; this case ran the other way.
Joint affordability for a £297,000 loan on two PAYE incomes. On standard 4.5x lending, combined income of c.£66,000+ comfortably supports the loan. Sales leadership and utilities technical roles are both well-treated by mainstream lenders, though variable elements (commission for sales, on-call or shift premiums for utilities) need handling carefully.
Property type, purpose-built flat in London. Purpose-built flats are well-treated by mainstream lenders, but lease length, ground rent and service charge all need to fit lender criteria. Skipton’s standard criteria for purpose-built flats kept the case running cleanly.
How Heron Financial approached the recommendation
The Heron adviser focused on lender fit for the deposit structure, joint affordability, and product choice.
Lender mapping for sub-60% LTV. Heron Financial narrowed the panel to lenders offering the sharpest pricing in the deep-LTV tier, with clean criteria for joint employed couples and purpose-built flats in London.
Joint affordability check. The adviser confirmed how the chosen lender would treat both incomes, including any commission element for the sales leadership applicant and any variable pay for the utilities technical applicant, and confirmed the £297,000 loan sat comfortably within affordability rather than at the edge.
Sale equity coordination. The £202,000 of equity from the previous property sale needed to flow cleanly into the new deposit at exchange. Heron Financial aligned the sale and purchase timings so the chain ran smoothly.
Lender choice. Skipton Building Society was the right home for this case. As a mutual, they offer competitive pricing in mid-to-low LTV bands, clean criteria on joint employed couples, and a straightforward intermediary-lending process. Skipton is well-regarded in the broker market for consistent underwriting and competitive rates at sub-75% LTV.
Product choice. A fixed rate gave the clients payment certainty in the early years of the new home. For a couple stepping into a meaningful loan in London, even at a comfortable LTV, locking in the rate for a defined period was sensible.
The outcome
The mortgage completed in May 2026. The clients moved into their new home with:
A £297,393 mortgage at 59% LTV against the purchase price (48% against valuation)
A fixed rate on capital and interest repayment
£125,000 of instant equity from the positive valuation
The full sale equity rolled cleanly into the new deposit
Strong high-street pricing inside the 60% LTV tier
What this means for buyers in a similar position
If you’re a home mover with significant equity from a previous property, the LTV band you land in matters as much as the size of the loan you can afford. Dropping below 60% LTV typically unlocks the sharpest pricing on the high street, and crossing into the 60% tier from above is one of the biggest single-step rate improvements you can engineer.
The other useful thing to know: if the lender’s valuation comes in above the purchase price, the loan and rate are anchored to the lower of the two, but you get the additional equity buffer in the property from day one. It’s a quiet win that confirms the deal was a good one. A broker can model the LTV and rate impact on your specific numbers before you decide how much deposit to deploy.
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 confirm the agreed price isn’t stretched, give you instant equity in the property from completion, and provide headroom against future market movements. It’s a quiet positive.
Is a 60% LTV mortgage worth aiming for?
Yes, if you can comfortably afford it. 60% LTV is typically the sharpest pricing tier on the high street, meaningfully better than 75% LTV, with the rate benefit usually flattening out below 60%. For home movers with significant sale equity, putting just enough deposit in to drop into the 60% LTV tier often unlocks the best rate available without overcommitting cash.
Can you use sale proceeds from a previous home as the deposit?
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.
How do lenders treat commission income for sales professionals?
It varies materially by lender. Some lenders use 100% of commission averaged over the last two years from P60s and payslips. Others use 50%. Others require a longer track record before counting commission at all. Lender choice can shift the assessed income by thousands, which matters even on cases like this where the loan size is comfortably within affordability.
Why might my mortgage end up with Skipton Building Society rather than a bigger high-street bank?
Lender choice depends on which lender’s criteria fit your case at the best terms, not on brand recognition. Skipton is a mutual building society with competitive pricing at sub-75% LTV, clean criteria for joint employed couples, and a track record of consistent underwriting. Brokers regularly place cases with Skipton because they deliver strong outcomes on home mover and remortgage cases in mid-to-low LTV bands.
