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

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 4.94 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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