First time buyers borrowing £1.9m to purchase £2.95m property
Part interest-only, part repayment mortgage structure needed with latest bonus income
2.09% interest rate fixed for 5 years
Our clients were a First Time Buyer married couple, renting a property who wished to buy their own home.
To achieve this purchase, they wished to borrow £1.9m to buy a property valued at £2.95m.
What was needed?
One of the couple worked in Private Equity, and therefore received a significant part of his income periodically in large amounts. The couple therefore wanted to obtain a part interest-only, part repayment mortgage so their monthly repayments would be lower, and they could pay off lump sums when bonuses were received.
What was the challenge?
The client had only been in his new job for 2.5 years, so was unable to demonstrate much of a track record of bonuses. In addition, his bonus in 2019 was far lower than his 2020 bonus. This meant that a lender needed to be sourced that would recognise 100% of his most recent bonus to make it acceptable for affordability requirements.
How we provided the solution
Nick Plappert Executive Director, discussed precisely what was needed with his clients and understood their circumstances.
After researching the mortgage lending market, Nick was able to arrange borrowing of £1.9m, at a 2.09% five year fixed rate, with £1,770,000 on an interest only basis, and £131,495 with a repayment mortgage.
The clients were very happy as they didn’t think this mortgage arrangement to suit them would be possible and meant they could buy their dream home!
What was the rate?
The rate was 2.09% fixed for 5 years.