As a large mortgage specialist I am often contacted by clients looking for advice on the right million pound mortgage for them. I was approached by a husband and wife who wanted to buy a large residential property for £1.6 million. They wanted to borrow 70% loan to value which worked out as £1.12 million with the deposit coming from their own resource and needed a Million Pound Mortgage With Various Income Sources.
Having approached their own bank they felt the terms they were being offered were very uncompetitive and that they could potentially access a better deal through us.
As well as completing on a £1.6 million property my clients also wanted to retain their existing home. This home was valued at £950,000 and they had an outstanding mortgage of £570,000 on it.
My challenge was to find a lender who was prepared to agree the new facility based on the client’s income while taking the existing mortgage commitment into account.
Because of the changes that came about in 2014 by the City Regulator’s Mortgage Market Review that insists on affordability based mortgage lending, this was going to be a challenge.
Even though the rental income from the existing property was anticipated to cover their mortgage payments not all lenders were prepared to agree the new loan with the existing commitment in the background. In addition, my clients also had various income streams. They needed all their earnings to be taken into account in order to prove that the new mortgage was affordable to them.
Through my contacts I was able to find a lender prepared to agree the £1.12 million facility. They were happy to use the client’s various sources of income and satisfied that they could afford both the new mortgage and the existing commitment.
The £1.12 million mortgage was agreed on a capital and interest basis on five year fixed rate at 3.09 per cent. This excellent deal proves that there are lenders with an appetite to offer extremely low interest rates to high net worth clients – even if they don’t tick all the usual underwriting boxes.
Ultimately, the client got their Million Pound Mortgage With Various Income Sources.