My client is an Australian foreign national, looking to purchase her first residential property in London. She is the Director of a large marketing company in the City and receives a significant bonus income. She approached Enness because her circumstances and borrowing needs were too complicated for most high-street banks.
My client was a first-time buyer and required a mortgage with maximum borrowing. However, with a 5% deposit, the interest rates she had been quoted were very high—4.9% and over. The property itself was an apartment with unique features, which meant many lenders weren’t happy to lend on it. The value and location were very attractive, but the property was near retail businesses, which made it difficult to lend against.
We therefore faced several challenges. We needed to address the affordability issue, whilst stretching the maximum borrowing. I also wanted to help the client reduce the overall interest payments over the life of the mortgage, and find a lender who would accept the property with a 5% deposit.
My solution was to incorporate all of her income to maximise her borrowing potential. After achieving the loan amount my client needed, I then negotiated an offset facility to allow my client to save her bonuses in an offset account offered by the lender. This reduced her overall interest cost. Finally, I ran the details of the property with the surveyors I thought the lender was most likely to use. The property was acceptable to them, so subject to the final valuation and underwriting, the loan was offered successfully. The final structure and terms of the loan were 3.69% fixed for 2 years. The term was 29 years, and it was offered with an offset facility.
The lender was a specialist lender who was prepared to consider the client’s unique needs based on my assessment and presentation of the case. Because of our strong reputation for bespoke lending, the lender accepted the loan unconditionally. I was also able to negotiate a free valuation and no product fee on behalf of my client.
From initial offer to a final offer; I completed the case in eight working days. My client was very happy as the seller insisted on keeping the property on the market until a mortgage offer was produced. My client was thrilled with our work; our reputation for excellence and efficiency allowed us to find a solution very quickly.