I am looking for a 65% mortgage on a property worth £995K?

Q: I am looking for a 65% mortgage on a property worth £995K and I need to proceed quickly. I am self employed with an asset of £3m with a current debt of £1.1m.The net profit last year was £93k (£117k excluding depreciation of £24k). Can you assist with th

A:

Thanks for your query. Generally speaking, we’re looking at high street mortgage lenders for this request to borrow £646,000. Because you’d be asking for a multiple in excess of 5 times your net profits, the high street lenders wouldn’t consider it. They also don’t tend to allow us to add back non-cash expenditures like depreciation or amortisation. We could approach some private banks who have a minimum loan amount under 1M. If we can show that you can easily afford the repayments on a stress-tested higher rate of interest, we might be able to get you the loan you need. Also, it’s possible to consider refinancing your hotel to raise any shortfall in residential mortgage funds, providing you with a higher deposit for the purchase. We’d need to analyse whether commercial lenders would consider that your business can afford the higher commercial mortgage, and still pay you the income you’ve been earning on a personal level.