One of the problems most often faced by clients seeking large mortgages is the issue of loan to value (LTV). Even if you have a large deposit, most lenders do not like to offer over 65% LTV on mortgages over £1million, as this is considered too much of a risk.
This can be offset by placing assets under management (AUM), something many private banks will require.
However, I recently worked with a client who was looking for 70% LTV for the purchase of his new main residence but did not want to place AUM. A UK national and British passport holder, I have a longstanding relationship with the client and have assisted him with his financing requirements in the past. He was now looking to purchase a £6million residential property in London.
However, requiring such a high LTV with no AUM was going to be a challenge. Furthermore, his income streams also posed a slight problem. My client was a successful businessperson and the owner of a number of companies, each with different focuses. He, therefore, had a high income, but this was taken from various sources. Many high street banks will not take 100% of the income into account if it comes from different business; they will judge which is the ‘main income’, taking 100% of this, and then only take 50% of any secondary income.
Fortunately, a private bank will take 100% of a client’s income into consideration. I was able to negotiate with a prestigious private bank on my client’s behalf for a 70% LTV mortgage. We were able to secure terms for an excellent rate of 1.8% + LIBOR, on a 5-year interest-only repayment term.
If you are looking for a high loan to value mortgage, a private bank is likely to be the best option. If you would like to discuss your options, I would happy to advise you further.
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.
Some case studies are made up of enquiries that have come into the business, not all business completes, and the posting of a case study does not represent a completed piece of business.