Scenario:
Our client was a partner at a law firm who was purchasing a new residential property for £3.6 million, putting down a 40% deposit. Having recently moved to a new firm, their first year profit was significantly higher than at the previous partnership.
Challenges:
To obtain the loan required, we needed a lender who could work off the latest years income. Most lenders require at least 2 years of partnership drawings from the current firm for affordability assessments. Adding pressure, the seller required exchange of contracts within 6 weeks, meaning we needed the mortgage approved in ideally less than 2 weeks to allow sufficient time for legal work to be carried out.
Solution:
We presented the case to a high street lender experienced in working with professionals, showing an overview of the client’s financial history and a strong income trajectory at the new firm backed up by a letter from their accountant. We then worked closely with the lenders specific large loans team, providing documents and responding to enquiries immediately to expedite the process. This approach allowed the application to be fast tracked and the required mortgage amount was approved ahead of the 2 week target.
Key figures:
Property value: £3.6 million
Loan amount: £2.16 million
Repayment type: Part interest only
Product type: 2 year fixed
Interest rate: 3.8%