Scenario:
The client was buying a new home in central London. He was living in the UK on a visa. His main source of income was from personal trading of stocks, shares and forex.
He also received rental income from a property portfolio in the UK so it was fair to say his circumstances were very complicated.
Challenges:
Due to the nature of his job, there were large fluctuations in income over the last 3 years which most lenders are not comfortable with, especially in a volatile market such as trading.
In addition, the majority of high street lenders will not factor in rental income in their affordability calculations. Living in the UK on a visa without indefinite leave to remain further added to the complexity.
Solution:
We approached a private bank who took a holistic view of his financial situation as they are familiar with clients with multiple income streams. The client had a strong track record, albeit one that fluctuated, that clearly demonstrated the loan was affordable.
This particular private bank normally require assets under management, however the broker was able to negotiate a dry lending facility.
Key figures:
Property Value: £2.8 million
Loan amount: £1.4 million
LTV: 50%
Repayment type: Interest only
Product type: variable
Interest rate: 2.25% + LIBOR