Scenario:
Our clients were investment bankers buying their first home in West London for £2.2 million. They each received large annual bonuses which were greater than their basic pay.
Whilst they both had large incomes, they only had a 10% deposit available, which in the current market was very difficult.
Challenges:
Firstly, based on the purchase price and size of deposit, there were not any high street lenders able to assist. Secondly, one applicant had recently started a new job and had only received one annual bonus, although she was able to provide a track record from her previous company.
Solution:
We approached a private bank who specialise in high net worth mortgages. As such, they were able to lend the full 90% loan to value without any assets under management.
In addition, the bank were able to offer the whole loan on interest only. This solution was perfect for the clients as it reduced their monthly repayments giving them greater flexibility.
Key figures:
Property value: £2.2 million
Loan amount: £1.98 million
LTV: 90%
Repayment type: Interest only
Product type: 5 year fixed
Interest rate: 3.09%