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Case Profile
The client had agreed to purchase an Off Plan property; a substantial deposit had been paid, but he required a mortgage in order to complete on the purchase. Due to the residency of the client, and his income coming from self-employment, however, sourcing a mortgage was a challenge.
The client was both a non-resident and non-domiciled in the UK. He had agreed to purchase the Off Plan property in central London for £2.2 million, and had paid the deposit of over £1,000,000. With the notice already served on the property, he required the mortgage in order to provide the balance of £1,175,000 to complete the purchase.
As well as being a foreign national and non UK resident, his income came from his own business. He operated in a variety of countries which added further complexity to his income structure. As a result of these factors, the client had struggled to meet the lending criteria required by the majority of lenders.
Other brokers, who the client had approached, had offered interest rates starting at 8.99% with hefty legal and arrangement fees. The client approached us to see if we could arrange a mortgage with a lower rate.
Solution
We have unlimited access to the market and strong relationships with a number of private banks. As a result, we were able to secure the client the mortgage he wanted.
After considering all aspects of the client’s circumstances, we presented his case to a lender who had the flexibility to take a view on his residence status and income structure.
They were happy to lend the full loan amount the client required. This was based on the rental income and a top up on the loan, with interest on account to service the additional difference needed to complete the transaction. The rate was also half that being offered by alternative providers at 3.99%.
We were able to demonstrate that the client had sufficient savings and income to maintain their current lifestyle, making the lender comfortable in providing the full loan amount.
The client achieved the borrowing he approached us for, and was able to complete the purchase at a much lower rate than previously offered.
Deal Highlights
| Loan amount: | £1,175,000 |
| Rate: | 3.99% |
| LTV: | 54% |
| APR: | Overall cost for comparison 4.70% APR representative variable |
| Term: | 5 years |
| Type: | Interest only |
| Loan purpose: | Purchase |
| Lender’s arrangement fee: | 1.5% of the loan amount |
| Early repayment charges: | 2% in the first two years |
Notes
This case study is for information and illustration purposes only. It is not an offer, or suggestion of an offer. Each mortgage case is assessed on an individual basis and there is no guarantee that the solution described here can be repeated in the future.
Please note that this specific deal may not be available to – or suitable for – all customers, dependent on their individual circumstances. The rate quoted may become out of date at short notice and may not be available at the point at which customers enquire about it. This document may not contain all the information needed for customers to make a decision and they should seek advice.
Overall cost for comparison 4.70%APR representative variable based on 5 years at 3.99%. Lender’s arrangement fees of 1.5% of the loan amount. The actual rate available will depend on your circumstances. Ask for a personalised illustration.
largemortgageloans.com is a trading name of largemortgageloans.com Ltd. A fee of up to 1.17% of the mortgage amount is payable, of this 25% is payable on application and the remainder on completion, e.g. on a mortgage of £1,000,000 the fee would be £11,700 of which £2,925 would be payable on application. The precise amount will depend on your circumstances.
Your home or property may be repossessed if you do not keep up the repayments on your mortgage. You may have to pay an early repayment charge to your existing lender if you re-mortgage.
