Recently, we were approached by a client who is the founder and director of a successful tech company. The client is a British national based in both London and Monaco. The client reached out to us as they were looking to acquire a residency in the UK and wanted to purchase a property. As a result, they were looking for a mortgage.
As any entrepreneur, founder or company director will know, anything which takes time and attention away from the running of the business can be distracting, and arranging a high-value mortgage is no different. The client approached us to help them save time, create efficiencies, access and negotiate with lenders and ensure they got the best possible deal. This was especially important because business owners and entrepreneurs can find it more challenging to arrange mortgages themselves as they may have non-standard income, multicurrency income, they often generate income through structures, have unusual payment schedules and so on.
The client had identified a residential country house in the UK worth £1.75 million that they wanted to buy. The client wanted the most advantageous interest rate, which reflected their companies' profits, their Monaco property and their ability to put down a substantial deposit of £525,000 (30% of the property price).
Finding a lender that can use a privately-held company's profits instead of the borrower's income can be tricky, but it is possible. Lenders can view even very successful and large business owners as self-employed and less likely to have regular and stable monthly payments than employed individuals. Affordability is central to mortgage applications, so we knew we had to approach a lender that would take a holistic view of the client's situation. Through our network of more than 500 lenders, we identified and negotiated with a niche lender that could meet all borrowers' requirements. As a result, we secured a fantastic part-and-part mortgage at 2.15% above the base rate.