My clients were a husband and wife looking to buy a new family home in Highgate who needed a million pound mortgage for self-employed couple.
They needed to borrow a total of £1.14 million against a purchase price of £1.85 million (61 per cent loan to value). Both clients were classed as self-employed as they were doctors but their loan requirement was equivalent to 5.3 times joint income which is outside the agreed multiple for most lenders.
In addition, my clients own several other properties on a ‘buy to let’ basis. They also wanted to retain their existing home as an investment on completion of the new mortgage.
With my clients being self-employed, I approached a lender with a flexible approach to establishing mortgage affordability. Rather than applying strict income multiples, this lender was able to take an affordability based approach to my clients needs. Using a budget planner my clients could prove that they had sufficient income to maintain a mortgage of £1.14 million and the lender was happy to agree the loan on this basis.