Securing a buy-to-let mortgage based on a client’s net worth over income

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THE SCENARIO

Occasionally clients will come to Enness seeking a mortgage while they have a low income or no income at all. A lot of lenders will be reluctant to take on these types of application, but Enness can overcome these obstacles.

One client came to me who made his money from an interest in stocks and shares investment. He therefore had a low income but a substantial overall net worth from years of savings. He came to Enness following an online search including his exceptional circumstances.

He was seeking a mortgage of 67% loan to value (LTV) on a £900,000 luxury flat in Kent, UK. My client had enough money in savings to fund the purchase but preferred to arrange a mortgage rather than put down a large amount of cash in one go. Lenders, however, would likely be difficult about his lack of income.

OUR SOLUTION

In order to get around the issue of income, I recognised that it was necessary to approach a lender who would be able to substitute my client’s net worth for an income. A well-known high street lender that I have a good relationship with is able to just that and I negotiated an attractive rate of 1.99% over a 5-year fixed period with his desired 67% LTV.

This was an ideal solution for my client as it meant that he would not have to sell anything from his portfolio to gain this new property. At Enness we are very proud of our ability to tailor our service to each client’s individual needs.

 

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