Our clients – a partner at a property consultancy and his partner – were looking to obtain a mortgage of £1.39m to buy a residential property valued at £1.85m. At the time, one of these clients owned three properties – one residential, two investment – and was planning to convert the residential property into a let-to-buy. Conversely, our other client was a first-time buyer. They were looking to obtain a Joint Borrower Sole Proprietor (JBSP) mortgage. Such a mortgage would be held under joint names, while the ownership of the property would be held under a single name – on this occasion, in the name of the first-time buyer.
This case presented a number of unique difficulties:
- Our clients required an interest-only mortgage at a loan-to-value of 75%. Few lenders are willing to offer such mortgages. The fact that the required mortgage was more than £1m and that they required a JBSP mortgage made this requirement especially difficult to satisfy.
- Our clients also required a lender who would take mortgaged properties in the background into account; again, not all lenders are willing to do this.
With access to every lender on the market and strong working relationships with specialist lenders and private banks, Private Finance’s brokers are uniquely positioned to find financial solutions to even the most challenging of problems.
Having surveyed the market, looking for lenders with an appetite for lending of this type, our broker was eventually able to locate a competitive mortgage that satisfied all of our clients’ requirements. This was an interest only JBSP mortgage with a rate of 2.29% for the full required amount of £1.38m.