The client wanted to purchase their dream home in the country for £1.2 million. They did not have a large personal income but had a buy to let portfolio of 6 properties valued at £1.65 million. The client’s personal income did not come from a traditional source so would not be accepted by the high street lenders. The case was made harder as they also had no cash to put down as a deposit.
The income from the buy to let portfolio was sufficient to enable the total borrowing, however due to the source of the personal income and the lack of a cash deposit, the case would not be considered by the high street lenders.
Using our connections with over 40 private banks we were able to find a bank that would lend the client the full £1.2 million to purchase the residential property. The loan was arranged across all 6 buy to let properties and the new residential property. This enabled the client to purchase the new property despite their low personal income and without putting down any cash as a deposit.
|Loan amount:||£1.2 million (42% LTV on £2.85 million, comprising of £1.2 million, new main residence, plus £1.65 million, BTL portfolio)|
|Rate:||Variable rate of 4.0%|
|APR:||Overall cost for comparison 5.7% APR representative variable|
|Loan Purpose:||Residential Purchase|
|Lender’s arrangement fee:||1% of loan amount|
|Early repayment charges:||None|
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 The rate quoted may become out of date at short notice and may not be available at the point at which customers enquire about it.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 5.7% APR representative variable based on 5 years at 4.0%, lender’s arrangement fees of 1% x £1.2 million (£12,000), legal and valuation fees of £3000. 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% of the mortgage amount is payable, of this 25% is payable on application and the remainder on completion, e.g. on a mortgage of £100,000 the fee would be £1,000 of which £250 would be payable on application. The precise amount will depend on your circumstances.