Our client is a prominent and well-known individual in the financial services industry and, having worked for some of the biggest names in global banking, he set up his own business over 10 years ago. During that time, he has created a very strong personal balance sheet, consisting of cash, equities, private equity and other liquid and illiquid assets.
The property was being purchased in the client’s personal name to be his main residence in London and is somewhere he expected to live for the long term.
The client’s assets and financial position meant he could have easily purchased the property in cash (in fact, doing so may have put him in a slightly better buying position). However, he decided to use a mortgage over cash for the following reasons:
We agreed the mortgage in 12 working days, had the valuation instructed and completed in three days and the full offer and account opening was completed in two weeks. We worked hard with the client’s advisers, especially lawyers and tax specialists, to ensure that the absolute best solution was created.
The 10-year fix which we agreed was well outside of the bank’s normal credit offering however, the lender extended the offer based on the client’s profile and the loan to value. The rate represented a margin over the prevailing swap rate at the time of completion.