£3million mortgage without standard proof of income

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Proposition

Our client - a chief executive of an international company - required a mortgage of £3million on a property whose purchase price was £5.8million (a 52% loan to value ratio).

For financial planning purposes his income was below the highest tax threshold (50% at that time) which meant he was unable to show the level of income expected to support a £3million mortgage.

Solution

We were able to introduce our client to a private bank which took the time to fully understand his business and calculate the value within his company. The bank agreed to lend the full amount required, rolling up interest until an anticipated future capital event would enable a lump sum to be withdrawn to meet the interest payments.

The terms of the mortgage were a variable rate of 3% over Libor (which was 1.02% at that time) giving an initial payment rate of 4.02% ((APR 4.4%* - the overall cost for comparison) with a 0.5% lender’s arrangement fee and no early repayment charges at any time.

 

*APR (the overall cost for comparison) calculation based on a 5 year term, interest only, with an arrangement fee of £15,000 (0.5% of the loan amount), legal and valuation fees of £10,000. The actual rate available will depend on your circumstances. Ask for a personalised illustration.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

© Private Finance Limited, 2020. Private Finance provides independent mortgage advice and arranges individual mortgage solutions for clients. Private Finance is a trading style of Private Finance Ltd, 29 Lincolns Inn Fields, London, WC2A 3EG, registered in England no. 3855776 and its Appointed Representatives. Private Finance Limited is authorised and regulated by the Financial Conduct Authority (FCA registration number 310566).

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