Are you looking to secure a million-pound mortgage but have some complex holdbacks that could potentially cause obstacles? 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
One of our brokers, Paul Fredericks, was recently contacted by a client seeking to purchase a new home for his family at £1,210,000. As 50% shareholder in a limited company, the client had been drawing income in the most tax-efficient way possible i.e. drawing only a small salary from what were significant profit levels in the previous two years. While that is sound financial practice, it does not normally help for the purposes of a mortgage application as it shows low taxable income.
To further complicate matters, the client was seeking to borrow 90% of the purchase price – a tricky task when borrowing larger sums over the £500,000 mark. There was also a small default on the client’s credit profile, that had only recently been cleared.
Solution
One of the key aspects of mortgage broking is strong criteria and lender knowledge. Thankfully, Paul was able to discuss the case with a lender he knew would assess the client’s strong financial position by factoring his share of the Limited Company’s net profits, rather than relying solely on tax returns. A broader look at the client’s profile helped the lender to ignore the small default and Paul was able to secure the full 90% LTV – a loan of £1,089,000 – over a 30 year term, with no early repayment charges. Needless to say, the client was delighted with the outcome.
Deal Highlights
| Loan amount: | £1,089,000 |
| Rate: | 2 Year fixed rate 3.99% |
| Loan To Value: | 90% |
| Term: | 30 Years |
| Type: | Repayment |
| Loan purpose: | Purchase |
| Lenders arrangement fee: | 0.5% of loan amount |
| Early repayment charges: | No early repayment charges |
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 The rate quoted may become out of date at short notice and may not be available at the point at which customers enquire about it.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 6.20% APRC representative variable based on 24 payments at a fixed rate of 3.99% followed by 336 payments at a variable rate, currently 6.33%. Because all, or part of, the mortgage is currently, or will revert to, a variable interest rate mortgage, the actual APRC could be different from this APRC and the payments could increase, if the interest rate of the loan changes. For example, if the interest rate rose to 13.33%, the APRC could increase to 14.40%. 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.
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