The clients main home was mortgaged with a private bank and was on the lenders standard variable rate. There were no exit fees and therefore they wished to look at alternative options with other lenders.
The client had been an partner at a previous firm for more than 5 years but became partner of a new firm less than 12 months ago. Since then they had received monthly drawings and a bonus from their share of the company profits but the first years accounts. The first tax return had not been submitted yet and the only income evidence the applicant could provide was bank statements.
Magni Finance have successfully assisted many partners of law firms in the past and are very familiar with their unique situations. Knowing the first years tax return had not been submitted, we requested a letter from the finance director within the firm to verify the clients remuneration since joining the firm. The letter confirmed the clients fixed monthly income and the share of profits that had been paid and also provided a minimum income amount for the next financial year. The rate secured was more than 2% lower than the previous rate with the private bank which would save a considerable amount in interest going forward.
Property value: £3.5 Million
Loan amount: £3 Million
Repayment type: Part interest only
Product type: 2 year tracker
Interest rate: 5.39% (0.14% over base)