Our case studies

Bespoke residential mortgage for self-employed client

December, 20th 2017

Need a large residential mortgage? We have the banking contacts to provide a tailored solution where other lenders may not be able to help. To discuss this or any other large or complex mortgage case, please contact us on 020 7519 4984 or email us.

Case profile
The client was looking to purchase a new main residence in the UK. However, due to his missed mortgage repayments and his employment history as a self-employed contractor, he found sourcing a mortgage a challenge.

He was residing in the UK on weekends but working abroad Monday to Friday. He had been late with several mortgage payments on his previous main residence, within the previous twelve months.

An additional challenge lay in the fact that up until the previous month, he had been working as a self-employed contractor and had. therefore, only been on a PAYE contract for one month. This meant that it was harder to prove that he met lenders' affordability criteria as he would not be able to provide payslips as proof of income.

Solution
Using our expertise in arranging large and complex mortgages, we were able to source our client the lending he required. We took the time to evaluate the client's circumstances fully and after conducting market research we presented the client's case to a lender who was happy to take a view on his circumstances.

We identified a lender willing to overlook the recent late mortgage payments and take a holistic view of the client's circumstances. They were also comfortable with the client working overseas during the week and returning on weekends. His track record as a contractor was also taken into account when assessing his income allowing him to meet the affordability criteria.

Although they were not able to offer the full interest only mortgage the client initially wanted, they were willing to lend 50% LTV on an interest only basis with the remainder on a repayment basis.

The client was happy with the solution we arranged and was able to purchase his new home.

You can read more about how to get a mortgage as a contract worker here.

Deal Highlights

Loan amount:

£822,245

Rate:

1.42%

LTV:

75%

APR:

3.53%

Term:

19 years

Type:

50% LTV (£547,500) on interest only and 25% LTV (£274,745) on capital repayment

Loan purpose:

Purchase

Lender's arrangement fee:

£995

Early repayment charges:

2% on year 1, 2% in year 2 of the loan amount

Notes
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 3.53%APR representative variable based on 19 years at 1.42% and lender's arrangement fees of £995. The actual rate available will depend on your circumstances. Ask for a personalised illustration.

Your home or property may be repossessed if you do not keep up the repayments on your mortgage. Changes in the exchange rate may increase the sterling equivalent of your debt.

  • This Month's Top Fixed Rate

    Fixed rate
    Initial rate: 1.20%

    Period: 2 Year

    Rate will revert to the lender's standard variable rate currently 4.90%
    The overall cost for comparison is 4.34%

    1.20%

    More info
  • This Month's Top Variable Rate

    Variable rate
    Initial rate: 1.64%

    Period: Flexx for Term

    Rate will revert to variable rate, currently 1.65% thereafter
    The overall cost for comparison is 1.67%

    1.64%

    More info

    Get This Rate


Some of this month's top interest rates are listed above; the actual rate will depend on your circumstances. Please note that this information does not contain all the details you need to choose a mortgage, ask one of our advisers for a personalised key facts illustration on 020 7519 4900. The rate displayed may become out of date at short notice.

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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

largemortgageloans.com is a trading name of Largemortgageloans.com Ltd, 12 Pepper Street, London, E14 9RP which is authorised and regulated by the Financial Conduct Authority. We are entered on the Financial Services Register No 302228 which can be viewed here: www.fca.org.uk/register/. The Financial Conduct Authority does not regulate some aspects of buy to let mortgages, overseas mortgages and tax advice. Help and advice in regards to mortgages is available at www.moneyadviceservice.org.uk

Largemortgageloans.com Limited is registered with the Guernsey Financial Services Commission, reference number: 2269418, as a Non-Regulated Financial Services Business.

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 £300,000 the fee would be £3,510 in total. Of this, £702 (20%) would be payable on application and the balance of £2,808 (80%) on completion. The total fee is non refundable. We may also be paid commission from the lender. The guidance and/or advice contained within the website is subject to the UK regulatory regime and is therefore primarily targeted at customers in the UK. Calls may be recorded for training and monitoring.
You may have to pay an early repayment charge to your existing lender if you remortgage.

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