First Time Buyer (FTB) borrowing £1.2 million on a base income of £85,000, plus a bonus of £325,000

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Proposition

Our client wished to purchase a £1.8 million property, requiring a £1.2 million mortgage to do so (a loan to value ratio of 67%). He had been offered a loan of just £275,000 by his own high street bank, owing to his reliance on bonus as part of his overall income.

Client profile

A first time buyer aged 32, our client is a pension fund manager with an income of £85,000 base, plus a bonus of £325,000. He has investments of £800,000 after making the deposit of £600,000 on the property to be purchased.

Solution

Private Finance used its extensive range of contacts at private banks to negotiate a mortgage of £1.2 million at 2.5% variable rate (APR 2.9%* - the overall cost for comparison), this being a 2% discount below the lender’s standard variable rate (SVR) for a 5 year term. The loan was interest only – with the loan to be repaid via investments and bonus.

Fees

The client paid £6,000 arrangement fees (0.5% of the £1.2 million loan amount)

 

*APR (the overall cost for comparison) calculation based on a 5 year term, interest only mortgage with £6,000 arrangement fee, legal and valuation fees of £5,000. 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 4.95 stars by Reviews.co.uk based on 616 merchant reviews

4.95 / 5 Rating
616 Reviews
I always feel in safe hands when seeking advice from Julian. He always seem to find the right product for my circumstances, particularly when the information I have doesn't seem to fit into all the relevant boxes.
The team is excellent. Tim has an unerring ability to come up with deals that can't be found anywhere else and his team, including Maniksha, is superb at tying up all the loose ends and driving the deal to completion. And they got me some money back!
Chris Sykes was great at getting lending sorted. And dealing with surveyors and getting a retention lifted before completion. Wouldn’t hesitate to recommend.
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