The case in brief
- Client: UK national and resident
- Property type: Upsize Residential refinance
- Property value: £3 million
- Loan Amount: £2.7 million
- LTV: 90% + AUM requiment
An entrepreneur’s personal income can be sporadic, and the profit accrued is often invested back into their ventures. This is, of course, ideal for the trajectory of the business but not so ideal in the eyes of a mortgage lender when assessing affordability/loan-to-value restriction on personal income. This was the case for our client, who was looking to fund the purchase of a new property with a limited deposit. With our proven expertise, we secured a Private Bank Mortgage for our client.
The client
Our client is a UK-based UK national with a successful entrepreneurial background, having founded a tech company just over 5 years ago. The client was looking to upsize to a £3,000,000 property, but with infrequent personal income and reinvestment of the company’s profits, our client had only accumulated a relatively small deposit.
The advantage that our client had was the fact that their business accounts were very strong and indicated a solid trajectory for the business. This would help the client to bolster their individual profile and to indicate their ability to repay any high loan-to-value mortgage.
Our solution
As the client only had a small deposit available, Articus needed to create a strong case based around the customer profile and the future trajectory of the business. This in turn would help to formulate a bespoke solution in partnership with a private bank.
We worked closely with a private bank that specialise in self-employed mortgages. They were happy to accept the situation of our client and were comfortable in offering a competitive mortgage deal. We negotiated a 90% loan to value mortgage which would reduce to 75% within five years. We also managed to acquire highly preferable mortgage rates for our client of below 3.5%.
Traditionally private bank mortgages require Assets Under Management (AUM) to be accessed. However, at Articus we have relationships with several private banks who do not require AUM. For our client we secured the £3 million mortgage without Assets Under Management, ensuring that the small deposit backed by strong financials was sufficient.
Entrepreneurs can find difficulty in securing a high-value mortgage as their income is often tied up in further investment into their business. As a leading mortgage broker for high-net-worth individuals, we work closely with private lenders to negotiate competitive self-employed mortgages. Read more about our services, or speak to a broker today.