£1.45 million interest only remortgage for self employed client with low affordability

CONTACT STEVE

I recently helped a client remortgage his home so he could secure a £1.45 million loan on the property based in Richmond, which was worth £2.9 million.

My client’s existing mortgage had run past its term, meaning that my client was now stuck on his current lender’s standard variable rate (SVR), which will always be much more expensive than the original rate previously paid. As such, this was proving even more of an expensive hit to his self-employed income. This income wasn’t quite enough to take him off the SVR, however, so he was looking to secure a more affordable and beneficial remortgage deal as quickly as possible.

The key challenge I faced with this case, however, was the nature of my client’s employment. Although self-employed, he had a contract in place to start full time employment in 6 weeks’ time. This was likely to be a problem to high street lenders, as the majority require you to have been in employment for a certain length of time with a track record of income (or at least to have started a job), to ensure security and a more accurate figure to calculate affordability from.

Due to my excellent relationship with a number of specialist banks, I knew it would be possible to find a lender willing to find a more bespoke solution for my client. This particular lender was happy to base the loan on what he would be earning, rather than on his self-employed income, which allowed him to secure the loan before starting his new role. This was a like for like remortgage, which not only suited my client’s financial requirements, but also ensured he was prepared to start his new job with the peace of mind that his mortgage was taken care of.

OUR SOLUTION

I managed to obtain a full interest only 1.59% tracker rate (which was 1.09% above base rate), fully suiting my client’s needs.