I was recently able to assist a client who was looking to finance a second home purchase in London. My client was a Managing Director at a London-based firm, but his current residential property was in East Sussex, meaning he faced an extensive daily commute.
My client was looking for a competitive rate, and wanted to work with a broker who had extensive experience of working with large banking bonuses. Fortunately, Enness has a wealth of experience in securing property finance for clients with bonus-based incomes. Like many of Enness’ clients, he was extremely busy, and desired the sort of sleek, efficient service that Enness is well known for providing.
He also wanted a split between repaying on an interest only and capital and repayment basis, which is more difficult to achieve. As mentioned, my client’s income structure posed a problem. He received a large bonus, over double his base salary. Banks do not look favourably on this as it is a riskier type of income and is less sustainable over the term of the mortgage. Finally, my client also wanted to keep monthly payments to a minimum.
I contacted a lender who takes a practical approach when assessing income, affordability and repayment strategy. I arranged the loan amounts to fit within this lender’s criteria for interest only, as well as obtaining a very competitive rate.
His East Sussex home was worth £2million, and the London property he wanted to purchase was worth £1million. We released equity against his main home to provide a cash deposit for the onward purchase and repay his current mortgage; the final loan amount was £1.2million.
The final product was a rate of 1.7% fixed for 5-years, over an 18-year term; my client was extremely pleased with this as it was a lower rate than he had been paying on his East Sussex property. He was therefore able to proceed with his second home purchase in London.