I was approached by a couple looking to purchase a new main residence in Surrey. My client held a senior position in a major multinational company and, although he was UK resident, his income was paid in outside of the UK. He would therefore be needing a bank to accept him stream of international income for large mortgage loan approval.
My clients wanted to maximise their borrowing on a purchase price of £2.8 million. They also owned an unencumbered property worth £1.3 million which they planned to let. They wished to remortgage this property in order to fund part of the deposit need to complete their new purchase.
Having spoken to a number of lenders my clients were struggling to obtain the finance they needed because he paid no UK tax and his income was earned overseas. That’s when they approached me for help.
While my clients could provide cash from their own savings, had a significant income and owned a Home Counties property worth £1.3 million outright, they did not fit the lending profile for many private banks. This was because the main earner’s income was paid in Switzerland, he didn’t pay tax in the UK and they did not have a SIPP or other assets that they could transfer to the management of a private bank.
However, I managed to secure my clients a loan of 55 per cent of the total value of the two properties (equivalent to 55 per cent of £4.1 million, or £2,255,000).
The bank took a charge over both properties and was happy to agree the finance even though the client was paid overseas and the couple didn’t have any assets to move to the management of the new lender. The remaining cash needed for the residential purchase came from the clients’ own resources.
The loan was agreed at a rate of 3.2 per cent over 3 month LIBOR on a pure interest only basis over a five year term.