The case in brief
- Client: British National & Resident
- Property type: Residential Home
- Property value: £4.525 million
- Loan Amount: £3.5 million
- LTV: 77%
Despite an increasing amount of people taking the step to becoming an entrepreneur, it is still a challenging process to secure a mortgage due to their abnormal income.
The following case involves a British individual that was looking to buy a prime residential property in Central London.
Our client
Our client was a UK national who was born and raised in London. The property in question was worth £4.525 million and the client was looking to borrow 70% of that amount, for a property of this amount it can be difficult to secure a loan to value (LTV) this high.
As with many entrepreneurs, the client only drew income from the business when it was necessary – and tax efficient – it, therefore, fluctuated quite severely from year to year.
Due to the imminent interest rate rises, the client was looking to fix their monthly payments for five years on an interest-only basis to minimise costs.
Our solution
From the lenders’ perspective – and the FCA -, permanent employees have a far more stable and long-term income when compared with entrepreneurs. Fortunately, Articus has specialist knowledge of this relative niche part of the market with core relationships with all lenders and in this case a private bank.
When dealing with private banks, the way the case is presented is paramount. Due to a proven track record of successful businesses and the trajectories of their current business, the bank was happy to lend.
We secured the client a residential mortgage of £3.5 million on an interest-only basis for 5 years.
This solution was a fantastic result for the client and a notable example of how high-value mortgages for entrepreneur applicants can be achieved with the assistance of the Articus team.
Read more about our private bank mortgage services or speak to a broker today.
