Using Company Profits in Multiple Currencies as Income for a Client with Minimal Drawings
20th September 2023
Key Details:
- Client: Business owner
- Financing Requirements: £1,100,000
- Rate: 4.99%, 2-years fixed
- Reason for Borrowing: Wanting to remortgage their property
Enness was approached by a client who was drawing minimal income from their company, resulting in low day-to-day expenditure. The client required the remortgaging of their home, the replacement of the existing mortgage, and the raising of the total borrowing to £1,100,000 to facilitate the purchase of the total share of the property. The client owns two successful companies situated in different global locations.
The client wanted to maintain the lowest possible monthly payments and, therefore, requested a full interest-only loan. They further indicated that upon completion of the 25-year term, they intend to downsize their property, as it is no longer required. The majority of lending institutions in the United Kingdom solely take into account income drawn by an applicant from their business, denominated in British Pounds, while calculating the maximum viable loan amount. Income earned by the applicant in a foreign currency is not considered during the affordability assessment process.
Enness successfully secured a loan of £1,100,000 from a reputable bank by leveraging the client's net profits from their British and American companies. Enness was able to secure an appealing interest rate of 4.99%, which remained fixed for two years. In addition, the lender arrangement fee was substantially lower figure compared to the fees charged by most private banks, which usually range from 0.5% to 1% of the total loan amount.
Enness were able to assist the client in their unique financial situation, providing expert guidance and tailored solutions to help them achieve their goals. If you also require specialist advice on remortgaging your property, please get in touch via [email protected].
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