£595,000 Complex Income

Proposition
Our client – an accountant who owns a professional services business jointly with an overseas parent company – wanted to purchase a property in Kent for £795,000 using a 25% deposit. He needed a loan of around £595,000 (75% loan to value ratio). Perhaps not surprisingly, once he had his offer accepted on the property, he visited his own bank to arrange the mortgage.

Five weeks later his bank was still considering his application and the vendor of the property was getting nervous. At this point, the vendor’s estate agents Jackson-Stops stepped in and referred him to Private Finance to get the transaction back on track.

The issue that had stopped our client’s own bank from lending to him was the fact that he has a number of sources of income, including money paid into his company by the overseas parent company. His accounts are more complicated than an employee paid on a PAYE basis but this actually means he has more disposable income with which to service his mortgage. Unfortunately, many high street banks are either unable or unwilling to spend time understanding self-employed or entrepreneurial applicants who have several sources of income which cannot be proved by simple payslips and P60s.

Solution
Our client needed a bespoke mortgage solution; he just didn’t realise it until his bank let him down. We found a private bank who – after two meetings where one of our experienced professional mortgage brokers presented our client’s case to the bank’s underwriting team – understood the tax efficient way in which our client had been advised by his accountant to receive his income. They took the decision that our client could service the £595,000 loan based on his accounts and financial records.

This meant that our client did not have to drop out of the purchase transaction and lose his desired property.

Lending facility
A £595,000 discounted variable rate mortgage, based on a £795,000 valuation, was negotiated at a rate in line with some of the best available in the market.

The client was extremely happy with this outcome and relieved that he had been introduced to Private Finance when his own bank failed to deliver. In a further development, having lost confidence in his own high street bank, he also moved all of his banking requirements to the private bank.
 

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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