The client is a successful Project Manager for the United Nations based in Afghanistan. Their circumstances are so unique that most lenders could not assist, either because of the country of residence or because many lenders would assume the client would have diplomatic immunity in that role which would make them ineligible for their products. The client wanted to purchase a second investment property in the UK, with a maximum loan to value possible. The client’s income was strong, and spent very little of it on daily basis, due to the nature and location of the job role.
We were able to identify a niche lender that would be prepared to assist even though the client resides in Afghanistan. They accepted a letter from their employer confirming their address, which is a break from their usual criteria. As a manual underwriting niche lender, they are able to make such exceptions for the right clients. The most suitable facility we were able to source was a 2year discounted variable rate, using a rental cover calculation of 125% at 5%, which is market-leading for overseas residents and expatriate.
|Loan amount:||£244,000 (63.5% LTV on property value of £385,000)|
|Rate:||2.09% 2 year discount on SVR (currently 6.58%), current pay rate 4.49%|
|APR:||Overall cost for comparison 6.7% APR representative variable|
|Loan purpose:||Buy to Let purchase|
|Lender’s arrangement fee:||2% of loan amount|
|Early repayment charges:||3% of outstanding loan amount|
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 The rate quoted may become out of date at short notice and may not be available at the point at which customers enquire about it.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 6.7% APR representative variable based on 2 years at discounted rate, 23 years at standard variable rate and lender’s arrangement fees of 2% x £244,000 (£4,880). The actual rate available will depend on your circumstances. Ask for a personalised illustration.
Largemortgageloans.com is a trading name of Largemortgageloans.com Limited, which is authorised and regulated by the Financial Services Authority. A typical fee of 1.17% of the mortgage amount is payable. Of this, 20% is payable on application and the balance of 80% on completion. For example on a mortgage application of £100,000 the fee would be £1,170 in total. Of this, £234 (20%) would be payable on application and the balance of £936 (80%) on completion. The total fee is non-refundable.
Your home may be repossessed if you do not keep up repayments on your mortgage.