I recently secured a £1.8 million remortgage for a self-employed client in his mid-fifties. He owned a prime property in Oxshott, Surrey, which was worth £3 million and he needed to find a new lender because his existing mortgage term was up.
My client’s existing lender was unwilling to offer another product due to regulatory affordability concerns on my client’s earned income, despite the fact that he was asset rich. This is particularly common for mainstream lenders, as from a standard high street perspective, he was not able to evidence the required level of earned income on tax return.
As the self-employed director of multiple LLPs, my client could certainly afford the mortgage based on his other assets and income streams, however, the loan size and acreage of the property proved an additional difficulty. This was simply too big for a lot of high street lenders, with many viewing a plot of this size as a problem because it would be hard to value.
To get around the issue of income, I suggested to my client that he could put two years’ worth of mortgage payments on a deposit with a private bank that would then take charge over the money. This would allow my client to use his full asset base to support the mortgage, as opposed to just his earned income.
My client was happy to go ahead with this, and as a result, we were able to achieve a solution that is extremely rare in the marketplace. I also managed to secure this at an extremely competitive rate of less than 2.5%.
My client was very happy with this solution and has since continued to use Enness for further financial services. He is now speaking with my colleague here with regards to financing his commercial portfolio. Overall, an excellent result and a very happy client.