A client was introduced to me who wanted to purchase a country home in Oxfordshire to live in as her main residence. She was selling her existing house for £2 million and she did not have a mortgage on that property.
The new house being purchased was valued at £4 million, so she needed to borrow the balance and arrange a 2 million pound mortgage. She had already exchanged contracts for her purchase and hoped to complete in about a month. This meant we had to process the deal extremely quickly.
Her circumstances were fairly complex as she did not earn a traditional income but generated her earnings from sporadic property deals. Not having a regular income makes it tricky to get a mortgage so, in that circumstance, it’s very important to make sure your case is presented in the correct way and the lender fully understands your circumstances.
My client had some additional liquid cash and a SSAS pension. I found a private bank which was willing to work with my client, but due to her sporadic income the bank required two years’ worth of interest to be held on deposit, As the assets within the SSAS were very liquid we transferred the SSAS to the bank, this provided additional security against the loan but meant the pension income might sometimes be used to service the mortgage. This worked out very well though as my client was not reliant on her pension income for day-to-day living.
The mortgage of £2 million was agreed at a variable rate of 2.25% over LIBOR which is currently 2.24%. This was offered on a 5-year interest-only term with no early repayment charges and my client was delighted with the outcome. I only met with the client and private bank on 6th of June and the case has been valued and offered already, a couple of days over two weeks, so it’s been a speedy solution.