£3million mortgage without standard proof of income

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the full amount required, rolling up interest until an anticipated future capital event would enable a lump sum to be withdrawn to meet the interest payments.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, 2019. 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).

Private Finance Ltd is rated 4.94 stars by Reviews.co.uk based on 576 merchant reviews

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576 Reviews
Cold called Michael 17:23 on a Tuesday evening who within 20 minutes had gleaned sufficient information to email a solution on Friday afternoon. All correspondence and phone calls were answered quickly and accurately. Mortgages were raised in plenty of time for exchange. Michael, Maniksha and all others involved made an excellent responsive team making a difficult situation so much easier.
Just brilliant. Simon and Chloe have taken care of everything, twice now. The first time was really difficult, and Simon put in a huge amount of work to make it happen. Second time around, Chloe has taken the lead and it has been seamless. Thank you!
Jason Hall has always been outstanding and faultless to work with. He's also a top guy that really makes me feel like I'm his only client. Thank you!
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