"> 85% LTV interest only large loan placed by largemortgageloans.com | largemortgageloans.com
Our Case Studies
Our Case Studies » 85% LTV interest only large loan placed by largemortgageloans.com

85% LTV interest only large loan placed by largemortgageloans.com

The proposition

A broker’s clients, Mr & Mrs H, were first time buyers and had just had an offer for £2,050,000 accepted on the property that they were currently renting. They were looking to borrow £1,742,500 (85% LTV) on an interest only basis.

Case profile

The broker could not find any lender that would offer such a large loan size on an interest only basis, and also at such a high loan-to-value. Mr H was a senior banker with a £300,000 basic salary and a bonus of over £1,000,000 and Mrs H was a senior manager in retail, earning over £100,000 so income was not a problem. The clients wanted to be able to make unlimited overpayments as they both receive bonuses and want to be able to pay down the loan over the next 4 or 5 years.

The solution

The broker was happy for largemortgageloans.com to contact the client direct and we arranged to meet Mr H in his office to collect his paperwork and carry out a full fact find about his circumstances and priorities. We recognised that for such strong applicants there should be a private bank willing to offer these applicants a mortgage loan at a high LTV, if the clients were committed to reducing the LTV – using their bonuses – within the space of a year or two.

Deal highlights

We placed the case with a private bank which offered the clients a mortgage of 85% based on an interest rate of 2.75% over Bank Rate, with a 0.60% arrangement fee. The bank was happy to do this on the basis that the clients committed to reducing the LTV to 75% by the end of January 2011. As a condition of the mortgage the bank also wanted the clients to commit to staying with the bank for a minimum of 1 year, but would allow unlimited overpayments provided that the mortgage was not redeemed in full for 1 year after completion.

To make matters more difficult the property was then down-valued by the surveyor by £50,000 leaving the client short of funds and their vendor would not move on the purchase price. The bank agreed to split the shortfall with the clients and lend them £1,717,500 (85.875% LTV) against the property, now valued at £2,000,000. This got the clients out of a sticky situation and they were delighted to be able to buy the property that they had set their hearts on.

Return to Our Case Studies

Latest Articles/News

Case Studies

The mainstream mortgage market is designed to cater for the majority of can…

Latest/Related News

One of the elements which sets us apart from other mortgage advisers is our…

Press Release

The team at largemortgageloans.com has collectively been nominated for thre…

Press Coverage

Lock down your finances for the coming storms…

LML Brochure

Download our brochure to find out more about largemortgageloans.com and what we can offer

Click to Download

Sign Up

Subscribe now, to hear from us on the latest mortgage market news, products and services.

Client Testimonials


Live chat with
our team now