The case I most recently worked on was a low interest rate multi million pound mortgage for a family who owned a large property in Chelsea valued at £8 million. They had a relatively small mortgage on it – £750,000 outstanding and wanted to borrow a further £400,000 from the property.
We recommend our clients to regularly review their mortgage options leading up to the end of their term as this often makes financial sense. The mortgage market is highly dynamic and chances are new lenders and new product have appeared since your last mortgage was set.
The amount they wanted to borrow was also required to tide them over for the next 2 years, after which they planned to sell the house. They had school fees to pay and a holiday home abroad which they wanted to renovate. For this reason they needed a low interest rate multi million pound mortgage.
The problem was that in comparison to their income, which was jointly £80,000, the large amount they wanted to borrow was quite substantial. Consequently, before coming to me they tried various banks and brokers but to no avail.
Most high street lenders look at affordability when determining whether a client’s mortgage application could be approved, which in this case excluded the family. Private banks on the other hand are much more flexible in considering whole financial situations and compiling tailored products to meet their needs.