Are you looking for a large first-time buyer mortgage but have some complex holdbacks? 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
Our clients were a high-net worth couple who required a large first-time buyers’ mortgage. They had their heart set on a £3.1million property in need of some renovation. The couple intended on holding back some of their savings to spend on the improvements and therefore required a large first-time buyers mortgage of 85% loan to value (LTV) on a full repayment basis.
The LTV was challenging for our team as most mortgage lenders don’t offer 85% on a purchase of such high value. The couple’s complex income structure added to the challenge as the income of one individual came in the form of a basic salary plus cash bonus. That’s far from unusual for our expert advisers, however our client also received carried interest paid in US Dollars offshore, which did not appear on his UK tax return.
Solution
Our team needed to find a lender who would take the client’s overall position into account and take a view on the future carried interest the couple were due to receive over the next couple of years. The lender also needed to consider the realised carried interest paid offshore in US Dollars when calculating the amount they were willing to lend.
Our extensive network and expertise meant that we successfully found a lender on a fantastic rate, fixed for two years, and our couple are now happily living in their first home together.
Deal Highlights
| Loan amount: | £ 2,635,000 |
| Rate: | Rate fixed at 2.09% until 20th April 2020 |
| LTV: | 85% LTV |
| APRC | Overall cost for comparison 3.30% APRC representative variable |
| Term | 25 Years |
| Type: (Interest Only/Repayment) | Capital repayment |
| Loan purpose: (Purch/ remo) | Residential purchase |
| Lenders arrangement fee | 0.5% of loan amount |
| Early repayment charge | 2% in year one & 1% in year two |
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 3.30% APRC representative variable based on 24 payments at a fixed rate of 2.09%, followed by 276 payments at the lenders variable rate, currently 3.50%. 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 10.50%, the APRC could increase to 9.00%. 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.
To make an enquiry call us on 020 7519 4984 or visit our website.
