- Client: British National & Resident
- Property: Main residence in Belgravia
- Property value: £7,000,000
- Loan amount: £4,200,000
- LTV: 60%
- Rate: 2.24% p.a.
- Term: 5 years
Enness was approached by an entrepreneur who had launched a new business just six months earlier and was looking to secure a mortgage against a £7 million main residence in Belgravia. The client wanted to borrow £4.2 million, but their recent move into business ownership meant their income could not be evidenced in the way most mainstream lenders would typically expect.
The client had no income recorded on their tax returns and the new company did not yet have established accounts. On a conventional affordability assessment, this made the required level of borrowing difficult to achieve, despite the client having substantial assets and an established financial position outside the new business.
Rather than focusing solely on the client’s current income, Enness considered the wider financial picture and how this could be presented to lenders. In particular, the client’s former main residence provided an important part of the overall picture and helped support an application under the lender’s criteria for high-net-worth mortgage lending.
This broader approach opened up options that would not have been available through a standard income-based application. Enness approached specialist lenders and building societies with the experience and appetite to assess the client’s circumstances on a more individual basis.
The result was a £4.2 million mortgage secured at 60% LTV, with a five-year term and a competitive rate. The structure allowed the client to secure the level of borrowing required without relying solely on the limited trading history of their newly established business.
This case demonstrates why complex mortgage applications often require a lender to look beyond conventional income multiples. For entrepreneurs and other high-net-worth borrowers, assets, previous financial history and the wider balance sheet can all form an important part of the lending conversation, subject to the lender’s criteria.
Enness specialises in structuring mortgages for self-employed clients and borrowers with complex financial circumstances. By understanding the full picture before approaching lenders, we can identify the financing routes most suited to the individual case.
Risk Warning:
Mortgages secured against property carry risk. If you do not keep up with repayments, you could lose the property used as security. Property values can fall as well as rise, and borrowers should ensure they have a suitable strategy for meeting their mortgage obligations 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, 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.
