The client, who had relocated to Abu Dhabi to work and had rented out his former main residence in the UK, was looking to purchase a pied-a-terre in London. The purchase price was £2.5 million and the client wanted to borrow £1.625 million. He needed an offer within 4 weeks to secure the property.
The client’s income in Abu Dhabi was tax free and paid in US dollars. This meant he was not a UK taxpayer and consequently most high street lenders would not take into account his income. Also, the client’s income was insufficient to allow him to borrow up to £ 1.625 million, unless we could find him a lender who would take into account his earnings were paid tax free, and therefore equivalent to a higher taxable income.
Using our extensive range of private banking contacts, we were quickly able to find a bank that was comfortable with the client’s ex-pat status, would take into consideration the client’s tax-free earnings, and would gross up the client’s income to lend £1.625 million on an interest only basis.
|Loan amount:||£1.625 million (65% LTV on property valuation of £2.5 million)|
|Rate:||Bank of England Base Rate plus 2.49% (current payment rate 2.99%)|
|APR:||Overall cost for comparison 3.3% APR representative variable|
|Loan purpose:||Residential purchase|
|Arrangement fee:||0.5% of loan amount|
|Early repayment charges:||None|
Your home may be repossessed if you do not keep up repayments on your mortgage
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 The rate quoted may become out of date at short notice and may not be available at the point at which customers enquire about it.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 3.3% APR representative variable based on 5 years at 2.99%, lender’s arrangement fees of 0.5% x £1.625 million (£8,125) and legal and valuation fees of £2,526. 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.