The client was a high-net-worth partner at a law firm based in London looking to remortgage his family home. His fixed rate with a private bank was coming to an end and he wanted to find a more competitive rate.
He received a fixed monthly drawing and a share of the company profits throughout the year. The law firm was headquartered in the US therefore his income was paid in USD.
Since the introduction of the EU mortgage credit directive in 2016, most high street lenders will not accept income in a foreign currency, which added to his complex income structure, reduced his options.
Furthermore, in order to minimise the monthly repayments, he wanted part of the loan on interest-only which, at this loan size, further restricted the lenders available.
The broker was highly experienced in dealing with high net worth individuals and found a high street lender offering a competitive 5 year fixed rate on a part interest only and part repayment basis.
The case was presented to the banks large loans team who are familiar with complex circumstances and they were able to approve the mortgage with ease very quickly.
Property value: £5.5 million
Loan amount: £4 million
Repayment type: Part interest-only and part capital repayment
Product type: Fixed-rate
Interest rate: 1.89%