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Case Profile
largemortgageloans.com has helped raise mortgages for clients from a wide array of backgrounds, with different income sources and structures. Recently, we were approached by an interesting client– a world-class and renowned professional gambler. The client turned to us for help raising a mortgage of £500,000 against an unencumbered London property worth £1m he had owned for some time, with the funds to be used for business purposes.
Having been let down by his own UK bank as well as an overseas bank with whom the client had had a relationship for over 15 years, largemortgageloans.com was asked to step in and see if a solution could be found.
The case presented multiple difficulties. Most obviously, the client’s source of income would be seen as too volatile and unstable to support long-term finance. As a professional gambler, it is much harder for any lender to ascertain what a stable level of income would be and therefore calculate the client’s affordability.
Even eliminating the unstable nature of the client’s income, the next obstacle was that much of it was earned overseas on the international gambling circuit and non-taxable – and therefore not suitable for mortgage purposes.
Solution
As with all borrowers with complex income structures, it is vital to have a good mortgage broker with knowledge of the market and which mortgage lenders have an appetite for which deals. After a less than satisfying experience with his own two lenders, the client was fearful of having to go down the specialist lending route with its higher rates.
largemortgageloans.com was able to draw on our criteria knowledge, as well as our strong relationships with our global network of more than 200 finance providers to place the case with a regional lender whom we knew would take an individual view.
We were able to clearly provide evidence of the client’s high net-worth status, as well as his relative fame within his chosen profession. This was enough to support the view that his income would be sufficient in the long-term to support a low-loan-to-value mortgage against a great property in a sought-after London location.
Our specialist mortgage broker sourced a lender who agreed on fantastic terms that the client was over the moon with. Needless to say, when the chips were down, largemortgageloans.com were there for him!
Deal highlights:
| Loan amount: | £500,000 |
| Rate: | 3.75% - fixed 2 years |
| LTV: | 25% |
| APR: | 5.1% APR |
| Term: | 5 years |
| Type: | Interest Only |
| Loan purpose: | Residential Remortgage |
| Lender’s arrangement fee: | 0.75% of the loan amount |
| Early repayment charges: | 3% of the loan amount if paid in full 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 5.1% APR representative variable based on 24 payments at a fixed rate or 3.75% followed by 360 payments at a variable rate, currently 5.49% and lender’s arrangement fees of £3,750. Because the mortgage will revert to, a variable interest rate mortgage, the actual APR could be different from this APR and the payments could increase, if the interest rate of the loan changes. 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.
