High-LTV Mortgage with Complex Income Structure

Do you need a large mortgage, but have a complex income structure? 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

We were recently asked by a couple to investigate the mortgage options available to help buy their first home. The couple – both foreign passport holders but with permanent rights to reside in the UK – had their heart set on a house in south west London valued at £850,000. They required an 85% loan-to-value mortgage to complete the purchase. This is quite a high level of borrowing at that price level, which the majority of lenders would not be comfortable with.

Another layer of complexity came in the form of the husband’s income structure. As is often the case for people in the banking industry, a high base salary was accompanied by even greater bonus income. Not all lenders will accept this form of earnings, while some will cap the level of bonus income allowable in their affordability calculation.

Solution

Whilst the client was not hopeful we could find attractive terms – we were able to draw on our considerable lender knowledge and found a bank who could accept the client’s income structure and factor his increasing bonus income into their affordability calculation.

In addition to this, the bank was able to take a view around expected future income levels that allowed for the full loan required.

To the client’s surprise – and delight – the recommended product was at a phenomenal rate over a full 35-year term, allowing the happy couple to move into their dream home in no time at all.

Deal Highlights

Loan amount:£722,500
Rate:1.53% - Fixed for 2 years
Loan to Value:85%
APR:3.70% APRC representitive variable
Term:35 years
Type:Capital repayment
Loan purpose:Purchase
Lender’s arrangement fee:£999.00
Early repayment charges:3% of the loan amount if repaid within 2 years

 

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 The rate quoted may become out of date at short notice and may not be available at the point at which customers enquire about it.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 3.70%APR representative variable based on 26 payments at a fixed rate of 1.53%, followed by 394 payments at a variable rate currently 3.99% and lender’s arrangement fees of £999.00. 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.

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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.  

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