£1.4m mortgage secured from traditional lender for dream home few would lend on.

Mortgage rate: 2.09% two-year fixed rate.

Mortgage value: £1.4m.

Property value: £1.75m.

Our clients

Our clients were a couple with an existing, unencumbered property. They were seeking to purchase their dream home. Our clients had decided to retain their existing property, and place it on the rental market, primarily because of concerns over Brexit. They needed a mortgage secured for their dream home.

What was needed

Our clients had found their unique home. They were not selling their existing property, and so needed to obtain an appropriate mortgage to make ownership a reality.

What was the challenge

Traditional lenders wouldn’t consider a mortgage on a such a unique, high-value home, as there are no other properties like it in existence. Our clients were struggling to find a suitable mortgage. They were in danger of losing their dream home. Our clients needed to find a lender who could take a more pragmatic view.

The property was originally valued at £1.75 million. However, after the original survey, it was then revalued at £1.65 million by the lender our clients had first approached.  This meant the purchase was on the verge of falling through.

In addition, as the clients were not selling their existing property, they also required a means to fund Stamp Duty on their property purchase.

At the point Rose Capital Partners took up the case as the clients were in danger of losing the home they had set their heart on.

How we provided the solution

Our clients spoke with Bethany Smith of Rose Capital Partners who doesn’t shy away from a challenge or the unusual when arranging a mortgage for her clients.

Through doing a thorough fact find, she discovered that our client’s circumstances hadn’t been fully explained to other lenders, more open to considering a property of this nature.

In addition, Bethany arranged a buy-to-let mortgage of £180,000 on the existing property valued at £950,000 to help fund Stamp Duty on the new property purchase. A 2-year tracker mortgage was arranged which, although had a slightly higher interest rate than a fixed rate mortgage, was chosen because there are no early repayment charges payable. This, in case the clients did change their minds and wished to sell the property.

Bethany’s market knowledge saved the day. Plus having unrestricted access to all the lenders in the UK, combined with her willingness to go the extra mile to make it happen, meant that a mortgage was secured on this unique property. Thankfully the purchase went ahead successfully.

What was the result

Our clients secured a mortgage with a major high street lender (Barclays) on a market leading rate (2.09%). It just shows the importance of doing a thorough job. The client gets the best outcome that way, which is at the very heart of what we do.