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.
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.
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.
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.