I recently secured a loan for a husband and wife who were looking to remortgage their main residence in order to capital raise funds for home improvements, as well as paying off a substantial amount of personal debt.
My client’s residence was a grade 2 listed property which had a value of £1.4 million. They were in need of an £850,000 loan and were looking to have a £700,000 portion on interest only. They also needed to raise funds for debt consolidation of approximately £70,000.
Although the wife was on a standard employment contract, the key issue with this case was the fact that he was a contract worker who also owned a limited company. Due to the this, my client was able to offset some of his usual outgoings against tax and as a result his business accounts were much lower than his contract value. Generally, a mainstream lender would have trouble accepting this as they nearly always ask to see accounts. Because of this, we would need to find a lender who would be willing to use the contract value alone as my client’s proof of income.
Not only this, my client also owned a large stocks and shares portfolio from which he received a substantial amount of dividend income. I knew we would be able to use this to our advantage if a lender would be happy to take this into account and consequently enhance my client’s affordability in the eyes of a lender.
Luckily, I was able to contact a private lender that I have an excellent relationship with, who was willing to use both the contract value as my client’s income and the share portfolio as the repayment vehicle for the loan. This proved an excellent solution for my clients, allowing me to secure the amount they needed, on the terms they sought.
I was able to secure a 2 year discounted variable rate of 3.89%. This product also came with no early repayment charges, allowing my client to pay off lump sums with a view to then remortgage in a few years’ time onto a better rate.