I received a call directly from a client recently who was looking to raise a high Loan to Value (LTV) mortgage to buy a £1.5million property in London. Despite being a hedge fund manager at a very respected bank, my client and his wife were first time buyers. My clients had contacted a lender directly and had already been offered a mortgage but wanted to see whether Enness could beat those terms, so the pressure was really on.
My clients stipulated that they required a high LTV and sizeable loan amount. These requirements on a residential property of this value essentially ruled out nearly all lenders, so finding one who could meet my client’s requirements would be challenging.
Further, the combination of a high LTV and high loan amount with residential properties usually culminates in higher than usual interest rates because there is more risk involved for the bank.
Enness does, however, have at its disposal an unusually large variety and network of lenders, all of whom we make an effort to nurture and maintain over time. I was therefore able to choose a lender who I believed would be sympathetic to my client’s case.
I explained my client’s case to the lender and was offered the option of two different high LTV terms, one at 85% and one at 90%. The higher rate was significantly more expensive each month but my clients were satisfied I could source better rates than the lender they had previously contacted directly and opted for an 85% LTV loan.
This deal was made better as my chosen lender had terms in place which nicely complemented my client’s profession. Due to the nature of his profession, my client’s income was largely made up of annual bonuses paid in one lump sum. It therefore made sense that his mortgage repayments followed a similar structure.
I managed to negotiate a ‘bullet repayment system’. This involves interest charged monthly but the actual loan repayment being made annually.
I managed to negotiate excellent rates too, a 5 year fixed rate at 2.39% over a 30 year term to reduce the over payment. My clients also bought a life and critical illness insurance policy for the full term of the loan, an area which Enness continues to thrive and grow within.
My clients are delighted with their new home and cannot wait to move in.