How to get a £2million mortgage at 85% LTV

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As an entrepreneur, there are many factors which can affect your lending ability. Often income is more complex than purely drawing a salary, and you need to find a lender who will take a holistic approach to your financial circumstances in order to meet your needs.

Case profile

We recently worked with a client who faced a lending challenge that we see on a regular basis at largemortgageloans.com. Although they owned a successful business, the client’s income had fluctuated over recent years because they had made a choice to take a minimal level of income and instead invest all the capital they could in their business.

We needed to find a lender who would look at the overall earnings of the business, not just the client’s individual historical income levels. An additional challenge was levied as the client was looking for 85% loan to value (LTV) on a mortgage over £2million. Without the right assurances in place, this can be seen as a stretch too far for many lenders.

Solution

We were able to highlight a private bank. We approached the team there with the client’s overarching financial position, taking into account the business performance as a whole, rather than just the client’s individual income. Armed with this information and experience in presenting and negotiating tailored client solutions, he was able to secure the lending required.

Loan amount:
£2,210,000
Rate:
2.49% fixed for 5 years
Loan To Value:85%
APRC:Overall cost for comparison 3.50% APRC representative variable
Term:25 Years
Type:Interest only & Repayment
Loan purpose:Purchase
Lenders arrangement fee:0.5% of loan amount
Early repayment charge:
5% of the outstanding loan amount in Year 1, reducing by 1% year on year for 5 years

Overall cost for comparison 3.50% APRC representative variable based on 58 monthly payments at a fixed rate of 2.49% followed by 241 monthly payments at the lenders variable rate, currently 3.75%. Total amount to be repaid £3,934,347.60. As the mortgage rate is not fixed for the duration of the loan this amount is illustrative and may be vary in particular as a result of variations in interest rate.

Because part of your loan is a variable interest rate loan, the actual APRC could be different from this APRC if the interest rate for your loan changes. For example, if the interest rate rose to 9.00%, the APRC could increase to 6.90%. The actual rate available will depend upon individual circumstances and may not be available to everyone. Ask for a personalised illustration.

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

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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.  

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