First-time buyer in London: borrowing 5.5 times income with a gifted deposit

The client and their goal

Our client is a self-employed entertainer who was buying their first home in London. Thanks to a large gifted deposit, they needed to borrow £135,000, a quarter of the property’s value.

The challenge

The deposit was strong, but income was the sticking point. Their earnings were relatively low for a London purchase, so to borrow £135,000 the lender would need to agree to around 5.5 times income, based on their latest year’s figures.

That is more than many lenders will offer. Lending is commonly capped at around 4.5 times income, and some lenders assess self-employed applicants on an average of two or more years rather than the most recent year.

How we approached it

Dave looked specifically for lenders whose criteria reward a low loan-to-value. Some lenders offer an enhanced income multiple when the borrower has a large deposit, because the loan is a smaller share of the property’s value.

He placed the case with one of these lenders, which assessed the client on their latest year’s income and agreed the 5.5 times multiple needed.

The outcome

A £135,000 mortgage over 29 years at 25% loan-to-value, fixed for two years. The purchase completed in August 2026.

Dave reports that the client was delighted to be able to borrow the amount they needed, and that there were no sticking points along the way.

What this case shows

• A bigger deposit can increase how much you can borrow, not just reduce the amount you need. Some lenders offer higher income multiples at lower loan-to-values.
• For self-employed buyers, which year’s income a lender uses matters. If your income has gone up, a lender that uses your latest year may offer more than one that takes an average.
• Gifted deposits are widely accepted. Lenders will usually ask for a signed letter confirming the money is a gift that does not need to be repaid, plus evidence of where the funds came from.

Is this you?

If family are helping with your deposit, or your income looks low on paper against the prices where you want to buy, talk to us before you rule anything out. Our first-time buyer mortgage calculator gives you a starting figure with no credit check.

About this case study

Written up from the case notes of Dave Marcer, Mortgage Adviser at our Needham Market office. For more on this type of mortgage, read our guide to first-time buyer mortgages.

This case study is based on a real client and is shared with their permission. Names and identifying details have been removed. Every case is different, and what is possible for you will depend on your circumstances. Lender criteria change over time.

Your home may be repossessed if you do not keep up repayments on your mortgage.