- Client: British National & Resident
- Property: Residential property
- Property value: £2,075,000
- Loan amount: £1,037,000
- LTV: 50%
- Rate: 2.39%, 2-year fixed
Enness was approached by a British client looking to secure a mortgage significantly above the income multiples typically used by mainstream lenders. The client required borrowing equivalent to 8.2 times their income against a residential property valued at £2.075 million.
For many conventional mortgage applications, lenders will work within established income multiples when assessing affordability. In this case, however, the client’s wider financial position provided additional context that could not be captured by salary alone.
The client held an equity interest in a company valued at approximately £3 million and could potentially draw down this equity if required to support the mortgage payments. Enness identified a lender prepared to take this wider asset position into consideration when assessing the application, rather than relying solely on the client’s earned income.
The resulting mortgage provided £1.037 million of borrowing at 50% LTV, with a 2.39% fixed rate for two years. The facility was also structured on a full interest-only basis, which aligned with the client’s requirements.
The case demonstrates how a broader assessment of wealth and liquidity can be important when conventional income multiples do not reflect a borrower’s overall financial position. Rather than simply assessing the client against a standard salary multiple, the lender was able to consider the wider strength of the client’s assets and potential access to additional liquidity.
For high-net-worth borrowers with substantial assets but income that does not fit conventional affordability models, a specialist approach may provide greater flexibility. Enness works with lenders across the complex mortgage market and can explore structures based on a client’s wider financial circumstances.
If your borrowing requirements fall outside standard income multiples, speak to Enness about your mortgage requirements and explore the lending options available for your circumstances.
Risk Warning:
Mortgages secured against property carry risk. If you do not keep up with repayments, you could lose the property used as security. Interest-only borrowing also requires a suitable repayment strategy for the capital at the end of the mortgage term. The value of company shares and other investments can fall as well as rise.
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 and lender criteria. Terms and availability will vary depending on individual circumstances.
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.
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.
