Mortgage for Client with Complex Income Structure

Head of Insurance

Victoria Barton

Mortgage for client with complex income structure
Victoria Barton
Head of Insurance

Victoria Barton

Key facts:

  • Residential property in Gerrards Cross, Buckinghamshire
  • Property price:  £1,650,000
  • Loan amount: £1,237,500
  • LTV: 75%
  • Rate: 2.59% 5 year fixed
  • Over how many years: 25 years

In this instance, we were approached by a property developer, with several residential & commercial units owned across various companies/personally, who was looking for a residential mortgage with as much on interest-only as possible. The client needed to use the income in the business for it to work on affordability, but the income was predominantly from revaluations of properties in the business.

Most lenders do not like using revaluations as a form of income in a property company – it’s not the most sustainable source of income and is also not liquid as would involve having to sell a property to achieve that income. What is more, the client was only a 25% shareholder. Most banks who look at profit will, however, require a percentage higher than this (50% or above).

We had a good relationship with a private arm of a high street bank which was able to use the bottom line figure of the accounts without looking into the details of the accounts. They were also able to offer a competitive interest-only solution which was important to the client.

We are market leaders in the million pound mortgage space and that is confirmed by our lender access and completed cases. Our combined experience allows us to understand any lending request and quickly and professionally source and negotiate terms then complete transactions cleanly. As a result, the client was able to secure the loan amount he needed with an interest-only product as he requested with a competitive interest rate.

We can use pre-paid and rolled up interest methods, interest deposits, short trading history, one year's accounts or one year's tax returns and even very high loan to value mortgages for complex income types.

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