75% loan to value complex income mortgage offer.
1.59% five-year fixed rate.
£1.695m property value.
Complex income mortgage offer, secured through specialist lending team at High Street bank.
Our clients were a married couple seeking a complex income mortgage for a high value property. Their income was in the form of salaries and a mix of cash and shares bonuses. After 3 years of fruitless searching the couple had finally found the property they wanted to buy and required a mortgage offer as soon as possible.
What was needed?
The property was valued at £1.695m, and the couple had a 25% deposit available. They wanted to secure a £1.27 mortgage while keeping their monthly payments as low as possible. Plus they wanted the ability to pay-off lump sums on a regular basis.
What was the challenge?
One of the clients was an investment banker who received his remuneration as salary plus bonus. The complicating factor was that the bonus he received was in the form of both cash and shares.
The challenge was to find a lender who would consider the total compensation package for mortgage purposes including the shares awarded for the last 2 years. While keeping monthly repayments to a minimum. Banks normally only consider the cash element of bonus payments. In this case this would not have been enough for the 75% borrowing needed by our clients.
How we provided the solution
Nick Plappert, Executive Director of Rose Capital, used his experience and knowledge of the mortgage market to find a solution. He obtained the agreement of a lender to consider both cash and shares when assessing affordability for these clients.
Rose Capital Partners has direct access to a specialist lending team at a High Street bank. Taking into account the client’s financial track record Nick was able to discuss the client’ situation with the lending team. This enabled the bank to take a view on the lending decision. The result was an agreement on a suitable loan at a favourable 5-year fixed rate of 1.59% with a free valuation.
The clients wanted to split the loan between interest-only and repayment lending to keep the monthly repayments as low as possible. This meant the client would make the payments via the client’s monthly salary. Interest only monthly mortgage payments tend to be lower than an equivalent repayment mortgage. The clients could then make over-payments to pay down the interest-only mortgage when the bonus was received.
Nick was able to arrange this with the lender. The clients were absolutely delighted that they had secured their new home after 3 years of searching.
The complex income mortgage sourced by Nick suited their needs precisely. The interest rate was favourable, with a standard arrangement fee and with a free valuation.
What was the rate?
The 1.59% rate was fixed for 5 years, with a £999 arrangement fee and free valuation.