A high net worth client, with whom Enness had previously worked, recently got in contact to remortgage their family home. The client was a professional with a young family, who owns a Grade II listed, six-bedroom property in Hertfordshire. Their home is worth £2million plus, and was purchased with an original loan of over £1million.
The client is a senior executive, whose partner manages their estate full time. Since the client last dealt with Enness, their income has somewhat improved, and so they wanted to see whether they could better their current mortgage terms.
Despite this increase in income, the couple needed to use 100% of the father’s bonus income to support affordability. This proved an issue as banks will only typically accept a maximum of 50% bonus income for this type of loan, as it is a less reliable source of income compared to salary for example. Similarly, another complexity presented itself due to the client needing the entire amount on an interest only mortgage basis, using the sale of the property as a means of repayment. Common lender policy in this area is to allow a maximum of 50% of the property value on an interest only basis, using the sale of the mortgage property is the main vehicle of repayment. Clearly in this case, this wouldn’t be sufficient.
The property is a beautiful Grade II listed house and as you would expect with a property of that age, it was timber framed. This creates anxiety and barriers with conventional lenders who prefer a standard bricks and mortar construction.
Further, the client also has a separate two bed cottage on their estate under the same title which is a completely non-negotiable issue for many lenders.
Despite these difficulties, I managed to place my client with a challenger bank who I had recently completed a series of sizeable deals with. I was able to use my strong relationship and influence with the bank to take my client’s case all the way to the Head of Credit and gained sanction outside of credit policy regarding construction, the second property on the title and the interest only barrier.
As a result, I secured the client’s loan at a competitive 5 year fixed rate, of just 2.04% with full amount on interest only sale of property. This was an excellent and efficient result for my thrilled returning client, which was essentially achieved by my strong relationship with the lender in question.