My clients were a husband and wife looking to buy a new family home in Highgate who needed a million pound mortgage for self-employed couple.
They needed to borrow a total of £1.14 million against a purchase price of £1.85 million (61 per cent loan to value). Both clients were classed as self-employed as they were doctors but their loan requirement was equivalent to 5.3 times joint income which is outside the agreed multiple for most lenders.
In addition, my clients own several other properties on a ‘buy to let’ basis. They also wanted to retain their existing home as an investment on completion of the new mortgage.
With my clients being self-employed, I approached a lender with a flexible approach to establishing mortgage affordability. Rather than applying strict income multiples, this lender was able to take an affordability based approach to my clients needs. Using a budget planner my clients could prove that they had sufficient income to maintain a mortgage of £1.14 million and the lender was happy to agree the loan on this basis.
I was able to agree the borrowing on an interest only basis on a three year fixed rate at 3.19 per cent. My clients will open a bank account with their new lender but are not required to move any further assets.
While the deposit came from the clients’ personal savings, I also helped them to increase the size of their deposit to reduce their borrowing requirement.
The clients wished to keep their existing home as an investment and so I remortgaged this property on a ‘buy to let’ basis in order to raise capital. This property will be let in order to generate an income to cover the mortgage payments. This is in addition to a number of other investment properties that my clients owned.