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Our clients were the directors of a company fast-tracked for success. Their £500,000 joint salary made their desired loan of £2.5 million affordable; however they faced an issue in the figures surrounding their company’s income.
Their successful company had received an investment injection of over £15 million, all of which had been used to fuel development and expansion. With every penny invested in marketing and new systems to exponentially grow the company, the net profit was showing a loss.
The clients had extensive evidence showing that the company’s turnover, gross profit and underlying net profit were up over the preceding two years. However, they had been refused a mortgage by lenders, who believed that the net profit loss would render their £500,000 per year income unsustainable.
One of the clients was a US national and one a UK national and their dream home was a much larger property than their current house, priced at £4,350,000.
Our team approached the lender – a well-known private bank – and requested a meeting with its American team to fully present the case. With a Credit Manager and the clients in attendance, we presented the clients’ case in person. This face-to-face contact meant that we could explain why the company was currently running a net profit loss, and put forward the projected growth figures. The meeting also allowed us to explain the company’s future growth strategy and the expected end result.
As a result of the meeting, the private bank’s credit committee agreed to the large loan, and our clients were able to proceed with the purchase of their £4,350,000 dream home.
|Rate:||1.99% variable for two years|
|Lender’s arrangement fee:||0.5% of the loan amount|
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 The rate quoted may become out of date at short notice and may not be available at the point at which customers enquire about it.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 3.4% APRC representative variable based on 24 payments on a variable rate of 1.99% , followed by 95 payments at the lenders variable rate currently 3.5%. 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 10.5%, the APRC could increase to 11.3%. 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.