Heron Financial arranged a £386,000 mortgage with Virgin Money at an initial fixed rate of 4.44% on a 5-year fix for joint applicants buying a £540,000 purpose-built flat in South London. With a £154,000 deposit, the loan sat at 71% LTV. Heron recommended a 5-year fixed term to lock in payment certainty for the medium term.
The clients
The clients were a couple in their late thirties to early forties, no dependants, buying a purpose-built flat in South London. One worked as a Company Director, the other as a Photographer. They were putting down close to 30% of the purchase price as deposit and wanted a long stretch of payment certainty as they moved into the property.
The case at a glance
- Buyers: Joint applicants, age band 35–44, employed
- Occupations: Company Director and Photographer
- Property type: Purpose-built flat
- Location: South London
- Purchase price: £540,000
- Deposit: £154,000 (~28.5%)
- Loan amount: £386,000
- LTV: 71%
- Lender: Virgin Money
- Product: 5-Year Fixed Rate
- Initial fixed rate: 4.44%
Why this case mattered
71% LTV sits in a busy mid-band of mortgage lending. The cheapest mainstream pricing tier starts at 60% LTV, so the case is one step up from that floor, where most major lenders still compete actively. The headline rate isn’t usually decisive at this level. Lender appetite for the property type, treatment of company director income (typically a mix of salary and dividends), and the second applicant’s income structure all shape the right placement.
For households where one applicant is a Company Director, lenders look at how the income is drawn (salary, dividends, retained profit) and how stable the underlying business is. For households with a self-employed second applicant, the evidence base is typically two to three years of accounts or tax returns. Both threads can produce strong applications when matched to a lender that reads each income type fairly.
The product choice carried real weight. A 5-year fix at 71% LTV gives a long stretch of payment certainty in a mid-LTV bracket, which suits households planning to stay put for several years. Locking in the rate also removes the short-term refinance risk and lets the loan-to-value drift down naturally over the fixed term as the principal reduces.
Virgin Money is a well-established lender with a notable presence in joint applications and self-employed underwriting. For this case, Virgin Money matched on criteria, pricing and service standards at the time of application.
How Heron Financial approached the recommendation
The Heron adviser worked through affordability against the clients’ recorded household income, confirmed the deposit position against the £540,000 purchase price, and matched the case to a lender comfortable with the income structure on both sides of the application. With the clients prioritising medium-term payment certainty, Heron Financial recommended Virgin Money on a 5-year fixed rate at 4.44%.
The application was submitted in February 2025.
The outcome
The formal mortgage offer was issued in March 2025, and the purchase completed in June 2025. The clients moved into their new South London flat with a fixed monthly payment locked in for the next five years.
What this means for buyers in a similar position
Joint applications combining a Company Director and a second income (whether employed or self-employed) are common but underrepresented in online mortgage content. The practical question is which lender treats both income streams favourably and prices the case fairly at the relevant LTV. Headline rate comparisons rarely capture the full picture. Working with a broker who reads each lender’s criteria across mixed-income applications is what produces a clean placement.
For households in their late thirties to early forties at mid-LTV, a 5-year fix is often the right shape. It locks in payments through a meaningful chunk of the loan and lets the borrower come back to the market in a stronger position next time.
FAQs
Can a Company Director get a joint mortgage in London?
Yes. In this Heron Financial case, joint applicants including a Company Director secured a £386,000 mortgage with Virgin Money at 4.44% on a 5-year fix to purchase a £540,000 purpose-built flat in South London. Lenders treat director income on a salary-plus-dividends basis and look at the underlying business stability.
Is Virgin Money good for joint mortgages?
Virgin Money is a well-established UK mortgage lender and is regularly considered for joint applications, including those with company director income or self-employed income. Heron Financial assesses every case on its merits and selects a lender based on affordability, product pricing, criteria fit and service standards at the time of application.
What deposit is needed to buy a £540,000 London flat?
It depends on the lender and the case. In this Heron Financial case, the joint applicants used a £154,000 deposit (~28.5%) to place the loan at 71% LTV. A larger deposit drops the LTV and typically opens up better rates.
Why choose a 5-year fixed rate at mid-LTV?
A 5-year fix gives a long stretch of payment certainty and lets the loan-to-value drift down naturally over the fixed term. It tends to suit households planning to stay in the property for the medium term and who want predictable monthly costs.
How are joint mortgages assessed when one applicant is a Company Director?
Lenders typically assess director income as a combination of salary and dividends, often averaged over two years or based on the most recent year. Some lenders also consider retained profit. Heron Financial helps each household structure the application around the lender most likely to lend cleanly on the combined picture.
