Our Case Studies
Our Case Studies Large mortgage case studies from the experts

Large mortgage case studies from the experts

Another large mortgage loan placed

Welcome to our regular case study update. This case demonstrates the importance of having well-established relationships with the whole private banking market. To discuss this or any other large mortgage case, please contact us.

The proposition

A London broker encountered a problem with an existing private bank relationship when his client was asked to repay a £1.6 million commercial development loan. Only by referring the case to largemortgageloans.com was he able to find a solution from the whole of the market. Different private banks have varying appetites for different types of lending and it pays to ‘shop around’ when dealing with large mortgage loans.

Case profile

The broker’s client was a 40 year old businessman who owns and runs small private schools and halls of residence. Through his company, he borrowed £1.6 million from a leading UK bank to refurbish a property in central London, which he had originally bought for £1.2 million and which is now worth £3.5 million.

Being a short term commercial loan, the bank’s corporate banking division wanted the money back and directed the broker and his client to their private bank to arrange longer term finance. However, the private bank would offer only £1 million on a 5 year interest only basis, wanting a £600,000 cash injection from the client. The client did not have £600,000 in cash, nor did he have investable assets, having £7 million tied up in a portfolio of properties which he did not wish to sell. He needed to find a private bank that would lend £1.6 million on £3.5 million (46% LTV).

The solution

When largemortgageloans.com’s expert mortgage brokers interviewed the client, they realised that there was an added complication. Although the client’s company had made a profit of £360,000 in the last tax year, significant losses had been made in the year before, leading several private banks to decline the deal on grounds of affordability. largemortgageloans.com pored over four sets of accounts and realised that the loss was due to a combination of depreciation and amortisation expenses – i.e. non-cash entries. The client had also transferred funds from a wound-up company to another of his companies – a one-off expense of £1 million. An explanatory letter was written to explain the circumstances to an international bank which is known to favour clients involved in the education sector.

Deal highlights

The best deal for the £1.6 million interest-only 5 year loan on a £3.5 million property was 2.25% over 3 month LIBOR (i.e. just over 3%) and a 1% arrangement fee.

Return to Our Case Studies

This Month’s Top Fixed Rate

Fixed rate
Initial rate: 1.35%

Period: 2 years

Rate will revert to a variable rate, currently 4.99% thereafter
The overall cost for comparison is 4.46%

Get This Rate

This Month’s Top Variable Rate

Variable rate
Initial rate: 0.97%

Period: 2 years

Rate will revert to a variable rate, currently 4.99% thereafter
The overall cost for comparison is 4.37%

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.

Latest Articles/News

Case Studies

Successful negotiation of a bespoke, multi-million pound lending solution A…

Latest/Related News

It’s been an incredibly busy week, with the action beginning on Monday wi…

Press Release

States proposal to waive document duty on bonds hailed as a victory for mor…

Press Coverage

Could a retirement mortgage help you stay in YOUR home?…

LML Brochure

Download our brochure to find out more about Largemortgageloans.com and what we can offer

Click to Download

Sign Up

Subscribe now, to hear from us on the latest mortgage market news, products and services.

Client Testimonials


Live chat with
our team now