Recently, a client approached me with a requirement for a £1.3 million pound mortgage with non traditional income factored in on a property valued at £2.2 million after he was knocked back by two major High Street banks – including his own bank.
While my client had enjoyed an extremely lucrative career in the civil engineering sector, he had sold his business in 2008 and had not been working in the intervening period. While he had plans for future ventures, a property in the process of being sold and plenty of available capital, he did not have any ‘income’ in the traditional sense.
I approached several private banks that were prepared to lend to this client based on his impressive CV, his capital and the fact he was expecting a further capital sum from the sale of a property asset.
I agreed a £1.3 million loan with a well-known private bank at a rate of 2.25% over LIBOR with interest payable on a quarterly basis. No early repayment charges are applicable and the loan is fully flexible, allowing my client to repay capital as required. It has also been arranged on a five year interest only basis with the client intending to repay capital on an ad hoc basis.