I recently assisted two clients, a married couple with an existing mortgage held in the husband’s name. This was for a beautiful property in a desirable area of London, valued at £4.5million. My clients were looking to refinance this property, but unfortunately their circumstances had changed slightly since they had initially taken out the mortgage.
The husband was now on a slightly lower salary, which meant they were struggling to find a lender who could offer them the loan size they needed. The husband also only had one years’ bonus history with his current employer; lenders will generally look to see several years’ worth of bonuses to assess affordability.
We therefore needed to use the wife’s income to meet the affordability criteria for a loan of this size. However, the wife did not want to go onto the deeds as this would create a stamp duty issue. To add a further difficulty, the wife was a partner in a law firm, which meant she had a complicated income structure which some lenders can find challenging.
I therefore suggested we use a lender who offers a joint mortgage sole proprietor arrangement. This meant the wife could go on the loan to assist with affordability, but would not be on the deeds, which meant we would avoid the stamp duty liability. I also presented the husband’s strong career history to provide comfort that the bonus can be used towards affordability and also presented the wife’s income as clearly as possible to get the smoothest underwrite we could.
This lender has a very flexible underwriting approach, which makes them the ideal match for many clients with complex profiles. I also have an excellent relationship with the underwriter, which means I can help carry cases to completion even if we hit bumps along the way. The final product was a 2-year fixed rate at 1.59%, which was a great solution for my clients.
Whether you’re looking for a joint mortgage sole proprietor loan or have complex large loan requirements, I am confident we can help. If you’d like to discuss your options, please contact me below.