Do you need a million pound loan to develop your property?

Do you need a large mortgage loan to develop your property? We are experts at arranging large mortgage loans for clients who earn their income from a variety of sources. We have the private banking contacts to provide a tailored solution for you.

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

Case profile

Our clients were a couple in their early fifties, with a mortgage of £1 million and around £500,000 income per annum via a Venture Capital Trust; projected income for next year is £1 million+. They were looking to borrow £1.6 million; £1 million to replace the existing mortgage and £600,000 to finish building their main residence.

Traditional high street lenders were unwilling to lend the amount required based on the fact that income from the VCT had been lower in previous years because it was set up only 4 years ago.

The solution

The clients contacted largemortgageloans.com. We met with them immediately and arranged a meeting with a private bank, who were comfortable with the likely income from the VCT, having valued the property at £3 million. £1.6 million was made available, provided the clients discussed transferring other assets. The rate agreed was LIBOR (currently 0.97%) plus 6.5% during 12 month development period, reverting to LIBOR plus 3.5% for 4 years, once the property has been finished.

Deal highlights

Loan amount:£1.6 million (53% LTV on current valuation of £3 million)
Rate:LIBOR plus 6.5%¹ variable rate (7.47% pay rate) for 1 year, reverting to LIBOR plus 3.5%¹ variable rate (4.47% pay rate) for 4 years
APR:5.6%2 (the overall cost for comparison)
Term:5 years
Type:Interest Only
Loan purpose:Remortgage of residence, including capital raising for development
Lender’s arrangement fee:1% of loan amount
Early repayment charges:None

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

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.

¹ 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 The rate quoted may become out of date at short notice and may not be available at the point at which customers enquire about it.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.

2 APR (the overall cost for comparison) calculation based on 1 year at 7.47%, 4 years at 4.47%, with arrangement fees of 1% x £1.6 million (£16,000) and legal and valuation fees of £5,000. The actual rate available will depend on your circumstances. Ask for a personalised illustration.

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

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