£1.6million mortgage for a blemished credit record

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Monday July 25, 2011

Another deal placed by the specialists in large mortgage loans

We have just arranged a ‘near prime’ £1.6m mortgage at Bank of England bank rate plus 3.25%¹ – a pay rate of just 3.75% (APR 4.3%²) – for a young entrepreneur with plenty of equity but a slightly blemished credit record.

To discuss this or any other large mortgage case, please contact us.

Case profile

Our 28 year-old client has run his business as a sole trader for 8 years, before converting it into a limited company last year. His earnings are around £400,000 per annum. He wanted to buy a New Build property for £2.68 million, borrowing £1.608 million (4 times his annual income) at a loan to value (LTV) ratio of 60%. However, in 2007 he had a dispute with a hotel over a bill, which resulted in a County Court Judgement (CCJ). Although the client satisfied the CCJ in November 2007, it still shows up on a credit check in 2011.

Two mortgage brokers who tried to place his case with high street banks managed to get a total of 6 separate agreements in principle, only to have the banks’ underwriters turn the case down on every occasion because of the CCJ. The 6 credit checks involved in these applications further damaged his credit rating.

The solution

The client’s broker referred him to largemortgageloans.com, which has close links with the private banks who look at each case on its merits. The bank in question was impressed by our client’s accounts and tax returns, the stability of his earned income as a sole trader and limited company and the amount of equity (£1.072 million) he was prepared to invest. Our expert mortgage consultant negotiated a bespoke offer of Bank of England Bank Rate + 3.25%¹ on an interest only basis over a 5 year term, with no early repayment charges.

Deal highlights

Loan amount:£1.608 million (60% LTV on £2.68 million purchase price)
Rate:Bank of England Bank Rate + 3.25%¹ tracker (pay rate of 3.75%)
APR:4.3%² (the overall cost for comparison)
Term:5 years
Type:Interest Only
Arrangement fee:1% of the loan amount
Early repayment charges:None

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Note that 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.

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

¹ Please note that this deal may not be available to – or suitable for – all customers, dependent upon 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 letter may not contain all the information needed for customers to make a decision and they should seek advice.

² APR (the overall cost for comparison) calculation based on arrangement fees of £16,000 and legal and valuation fees of £5,000. The actual rate available will depend upon your circumstances. Ask for a personalised illustration.

largemortgageloans.com is a trading name of largemortgageloans.com Ltd, 12 Pepper Street, London, E14 9QY which is authorised and regulated by the Financial Services Authority. The Financial Services Authority does not regulate some aspects of buy to let mortgages, overseas mortgages and tax advice. largemortgageloans.com Ltd Registered in England and Wales No: 5070990 Registered Address: Bridge House, London Bridge, London, SE1 9QR.

Your initial consultation is obligation free. A fee as described below will be charged on application for a mortgage, this fee is non-refundable. We will also be paid by the lender. 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 in total of which £250 would be payable on application.

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Your home or property may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it. Changes in the exchange rate may increase the sterling equivalent of your debt. You may have to pay an early repayment charge to your existing lender if you remortgage. Think carefully before securing any other debts against your home.  

largemortgageloans.com is a trading name of Largemortgageloans.com Ltd, Aegon House, Ground Floor Suite, 13 Lanark Square, London, E14 9QD authorised and regulated by the Financial Conduct Authority (FCA). Our FCA registration number is 302228 and can be viewed by visiting the FCA website: www.fca.org.uk. The FCA does not regulate tax advice or some aspects of commercial, buy to let, overseas mortgages, bridging finance, finance and asset lending. Largemortgageloans.com Ltd is a licensed credit broker, and not a lender.

Largemortgageloans.com Ltd Registered in England and Wales No: 5070990 Registered Address: As above. The guidance and advice contained within the website are subject to the UK regulatory regime and is primarily targeted at UK customers. Calls may be recorded for training and monitoring.

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Largemortgageloans is a trading name of Largemortgageloans.com Ltd, Aegon House, Ground Floor Suite, 13 Lanark Square, London