Private bank borrowing secured for £2m residential property via skilful combined buy to let and residential mortgage solution

Private bank willing to monetise offshore investments as income

1.89% rate on buy to let property and 1.69% on residential property

Our client

Our client was a high net worth individual with a complex income of assets, including several buy to let properties and offshore investments.

What was needed?

The client wished to arrange a £1.5m (75%) residential mortgage for the purchase of a £2m property.

What was the challenge?

The client wanted to minimise the leverage of his buy to let properties and borrow as much as possible via a residential mortgage.

An assessment of the client’s income from High Street lenders fell short of the client’s borrowing requirements. This was because most lenders of this type will not fully consider investments as income, so the client did not meet their affordability criteria. A more sophisticated lending solution needed to be found.

How we provided the solution

Nick Plappert Executive Director, researched many possible options for the client after it was clear that High Street lenders would not be an option. Nick arranged the solution with a Private Bank which understood the client’s complex circumstances of a residential investment portfolio and offshore assets.

Nick arranged Private Bank borrowing of £1.2m, 60% of one of the buy to let properties worth £2m, and arranged further borrowing of £1.2m as a 60% residential mortgage on the purchase property.

This was possible because the Private Bank Nick had selected was willing to monetise the client’s offshore assets to effectively draw that income for the £1.2m residential mortgage.

This meant the borrowing was spread across only one of the buy to let properties in addition to the residential property and the client was able to fund Stamp Duty.

The client was delighted that a resolution could be found for his complex borrowing needs and that his stipulation of not unnecessarily leveraging his investment property portfolio was met.

What was the rate?

The rate was 1.89% on the buy to let property and 1.69% on the residential borrowing.