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Case Profile
largemortgageloans.com were approached by a client who was buying a new build, 6th floor apartment in London for £2,435,000. He had already paid a 25% deposit upfront and therefore was looking to arrange a mortgage of £1,826,250 in order to complete the property handover. In a climate of rising interest rates, he was keen to protect against future rises and therefore was seeking a 5-year, fixed rate mortgage.
Our client was an expat who had been working in Singapore for the past six years. He wasn’t looking to live in the property straight away, nor did he have plans to rent it out. However, he planned to return to the UK within 12 months and make the apartment his primary residence.
The client’s residency made the case more complex, because he did not have a credit footprint in the UK, which banks usually rely on to assess eligibility. He worked for an International bank and was paid in Singapore dollars, and therefore needed a foreign currency mortgage. In addition, a significant part of his income was paid in annual, non-guaranteed bonuses. This income needed to be taken into account by any lender in order to meet affordability criteria.
Living in Singapore also meant that our client had expensive outgoings in the form of rent. In order to make his mortgage repayments manageable, he wanted to borrow 75% LTV, with all or most of the funds borrowed on an interest only basis.
Solution
Our expert team of mortgage advisers applied their industry knowledge and global network of over 200 finance providers to find a suitable lender. The team sourced a solution by finding a private bank lender who would accept foreign income, take into account annual bonuses, lend at 75% LTV and allow the majority of the loan to be interest only. We also secured an attractive 5-year fixed rate, leaving us with a very happy client, delighted with his new home and the mortgage deal our team at largemortgageloans.com secured.
Deal Highlights
| Loan amount: | £1,826,250 |
| Rate: | 2.24%, 5 year fixed rate |
| LTV: | 75% |
| APR: | 3.2% APRC representative variable |
| Term: | 25 years |
| Type: | £1,582,750 (65% LTV) on interest only and £243,500 (10% LTV) on capital and interest repayment |
| Loan purpose: | Residential purchase |
| Lender's arrangement fee: | 0.5% of loan amount |
| Early repayment charges: | 5% of outstanding loan amount in year 1, 4% in year 2, 3% in year 3, 2% in year 4 & 1% in year 5 |
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 3.2% APRC representative variable based on a fixed rate of 2.59% until 2023, thereafter a variable rate of 3.25% till the end of the term, plus the lenders arrangement fee of £9,131,.25. 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. 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.
