Navigating a Complex Credit Profile to Secure a £930,000 Loan for a Central London Property

• Property: Central London property valued at £1,200,000
• Loan Amount: £930,000
• Product: Five-year fixed-rate mortgage at 5.67%, amortised

Enness was approached by a client looking to purchase a prime Central London property for themselves and their family. The client had a solid income but had recently established a limited company to improve the efficiency of how their income was structured.

The application presented several challenges. The client was working under two employment contracts, creating a double-working arrangement that lenders needed to assess carefully. One of the contracts was also due to end in the near future, meaning the lender needed sufficient evidence that the client’s overall income position was sustainable.

The client also had a significantly impaired credit history as a result of unforeseen circumstances. This restricted the number of mainstream lenders that could consider the application and made securing the required level of borrowing more difficult.

Maximising the loan size was particularly important to the client. We therefore needed to identify a lender that could assess affordability using income from both employment contracts rather than relying solely on the accounts of the newly established limited company. This approach was not available from every lender, making careful lender selection essential.

Given the client’s complex income structure and credit profile, Enness approached lenders that were comfortable considering non-standard circumstances. We worked closely with the lender’s underwriter to present the client’s position clearly, providing the relevant information around both employment contracts, the company structure and the client’s wider financial circumstances.

The transaction was also subject to strict timeframes, so maintaining communication throughout the process was important. Enness remained in regular contact with the estate agents and vendor while the application progressed, helping to keep all parties informed and ensuring the financing remained aligned with the proposed purchase timeline.

Following detailed discussions with the lender, Enness secured a £930,000 mortgage against the £1.2 million Central London property. The five-year fixed-rate mortgage was arranged at 5.67% on an amortised basis, providing the client with the loan size they required to complete the purchase.

This case demonstrates the importance of taking a specialist approach where a borrower has multiple income sources, changing employment circumstances and an impaired credit history. Rather than relying on a standard affordability assessment, Enness identified a lender willing to consider the client’s complete financial position and presented the application directly to the underwriter.

For borrowers with complex income or credit circumstances, lender criteria can vary significantly. Enness can assess your individual circumstances and explore complex mortgage solutions with specialist lenders.

Risk Warning:
Mortgages are secured against property and your home or other property may be repossessed if you do not keep up repayments. Interest rates can change depending on the product selected, and borrowers should ensure that mortgage payments remain affordable throughout the term.

Disclaimer:
This case study is for illustrative purposes only and does not constitute financial, legal or tax advice. Finance is subject to status, underwriting and lender criteria. Terms and availability will vary depending on individual circumstances.