A former client referred an individual to Enness who was seeking a large mortgage to purchase a new family home valued at approximately £1.2 million. The client was a senior executive and the primary earner within the household.
The family was permanently based outside London, while the client also owned a London property used in connection with work. The intention was to sell the existing family home, but the sale was unlikely to complete before the purchase of the new property. This meant the client would temporarily hold multiple residential mortgages and required a lender willing to take a flexible approach to the overall affordability assessment.
The client’s existing lender was unable to accommodate the proposed borrowing while multiple residential mortgages remained in place. Other lenders also needed to consider the affordability impact of the existing mortgages alongside the client’s wider financial commitments.
The proposed transaction also required a relatively high level of leverage, with borrowing equivalent to approximately 80% of the purchase price and around 85% of the property valuation. The valuation had returned below the anticipated level, making lender selection and presentation particularly important.
Enness approached a major high-street lender with experience in complex residential lending and presented the client’s wider financial position, including the anticipated sale of the existing family property and future affordability once that transaction completed.
The lender was able to take a holistic view of the client’s circumstances and consider the expected change in the client’s financial position following the sale of the existing property. This allowed the application to proceed despite the temporary overlap in residential borrowing and the relatively high LTV requirement, subject to the lender’s underwriting and affordability criteria.
The client secured the required mortgage on a competitive fixed-rate basis, providing the funding needed to complete the purchase of the new family home while allowing sufficient time for the existing property to be sold.
This case demonstrates how specialist mortgage structuring can help borrowers whose circumstances fall outside straightforward affordability models. Where there is a temporary overlap between properties, complex existing commitments or a high LTV requirement, presenting the full financial position to an appropriate lender can be critical to securing suitable terms.
Disclaimer:
This case study is for illustrative purposes only and does not constitute financial, legal, tax or investment advice. Finance is subject to status, affordability, underwriting, valuation and lender criteria. Terms, rates, LTVs and availability may vary depending on individual circumstances.
Risk Warning:
Your property may be repossessed if you do not keep up repayments on your mortgage or other borrowing secured against it.
Information contained in our case studies is for market and illustrative purposes only. In some cases, these may be made up of multiple cases and are for illustrative purposes only.
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Property values can fall as well as rise, and you may not get back the amount originally invested. Property investments can be illiquid and may take time to sell. Where borrowing is used, your property may be repossessed if you do not keep up repayments on a mortgage or other loan secured against it.
