I recently arranged a £3.4m loan for a client who had an adverse credit record, through no fault of her own.
There were several interesting facets to this case. Although my client held a British passport, she had been working overseas for the past five years in a very senior marketing position at an international conglomerate. She had only been with the company for a short time and her income was complex, with her basic salary supplemented by a considerable bonus plus housing allowance.
She had only recently returned to the UK, and was now looking to purchase a new main residence in London. A £3.4m purchase price was settled upon.
My client already owned a property in the UK, worth £1.6m. The plan was for her mother to move into this, and use it as her own residence. The existence of this property meant that we would be able to raise a larger loan overall, as this one could also be used as security by the lender.
The structure of her salary and her overseas employment history meant that there were already plenty of aspects of the case for me to consider. During the application process we uncovered a much more significant obstacle, however; a major blip was found in her credit file midway through the lender’s standard checks.
We looked into her credit history in detail and were able to prove that the black mark against her was in fact an error, and no fault of her own. We then went back to the lenders and worked closely with them to ensure the application could proceed smoothly.
Because the loan was secured against both properties, we were ultimately able to secure a total of £3.4m – giving my client 100% financing on her new purchase.
Because we were able to overcome the credit blip so quickly, the exchange was completed in extremely good time. The loan was agreed at an average rate of 1.8% and was on an interest only basis, with which my client was delighted.