Scenario:
The client was looking to purchase a new property in London. The property had an estimated value of £4.5 million.
The client was a HNWI with a large stock portfolio that they were willing to bring to the bank.
Challenges:
As a HNWI, the client had a complex income structure. The majority of the income came from vested stocks and an annual cash bonus. We had to find a bank that we could use this as part of the affordability calculations
We also needed a bank that would consider the large stock portfolio as additional income.
Solution:
We sourced a private bank that was able to factor in the clients entire situation.
With a private bank they can look at the overall profile of the client and assess on an individual basis.
Unlike retail banks, they also have flexibility on the terms they can offer. We managed to negotiate the rate below their standard level and reduced fees for the stock assets that the client was willing to pledge with the bank.
Key figures:
Property value: £4.5 million
Loan amount: £3 million
LTV: 66%
Repayment type: Interest only
Product type: Tracker rate
Interest rate: 1.70%