£4 million property purchase with 15% deposit

1st April 2018

Chris Lloyd

£4 million property purchase with 15% deposit
Chris Lloyd

Chris Lloyd

Regardless of how large your income is, the reality is that most private and investment banks have clear lending caps when it comes maximum loan to values (LTV) on mortgages over the £1million mark. Generally speaking, private banks will cap out at approximately 65% LTV, in order to mitigate their own lending risk.

This makes it very problematic to secure a LTV over this limit. I recently navigated this hurdle for a client who was looking to purchase a property valued at nearly £4million. My client had both a large basic salary and significant bonus income, which meant he would confidently be able to service a large mortgage. However, he only wanted to place a deposit of 15%, meaning he needed an 85% LTV mortgage.

Naturally, no high street lender would consider a case like this—but the majority of private and investment banks were also unable to help, meaning a creative solution was required.


Fortunately, I have an excellent relationship with one of the only lenders on the market who is currently offering large mortgages up to 85% LTV. This lender was prepared to offer my client a loan on an interest-only repayment basis, providing my client would make ‘bullet repayments’ every year, which would slowly bring my client’s facility down to 65% LTV.

They were also able to take a view on his bonus income, taking 100% of it into consideration. Many lenders will only take a portion of bonus income when calculating affordability as it is not considered a stable income. I negotiated exclusive rates for my client, meaning he could take out the loan on at 2.44% on a 2-year fixed basis, or 2.84% on a 5-year fixed-term mortgage.

I was also able to assist my client further by directing him to the Enness Insurance team. As he was currently paying a large premium for his life insurance cover, our in-house Insurance brokerage is now working with him to find a better value policy.

Call us +44 (0) 203 758 9393 or submit your details and a broker will get in touch.

Enness Limited needs the contact information you provide to us to contact you about our products and services. You may unsubscribe from these communications at any time. For information on how to unsubscribe, as well as our privacy practices and commitment to protecting your privacy, please review our Privacy Policy.

The Global High  Net Worth  Mortgage Guide

The Global High Net Worth Mortgage Guide

Are you considering buying a high-value international property? 

Our handy Global High Net Worth Mortgage Guide explores the world of international mortgage finance in prime property markets around the world. 

Whatever your property financing requirements, we have a specialist team in place dedicated to finding the best and most efficient solution. 

Let us guide you through the complex world of mortgages.  

Download Pdf