Large mortgage for home-buyer with complex income structure

Large mortgage for home-buyer with complex income structure

02.10.17 | Written by: Charlie London

We were approached by a married couple looking to purchase a new home for their growing family. The husband is the director of four companies, all specialising in land surveying. The wife is a stay at home mum.

The husband has a 33% shareholding in three companies, as well as a 33% shareholding in the overriding holding company. A lot of lenders are cautious when holding companies and subsidiary companies are involved, as profits are occasionally double counted.

The couple were looking to buy a six-bed detached house, a short drive from the New Forest National Park. Before approaching us, they had been in contact with a broker from their local town. Unfortunately, due to the husband’s complex income stream the broker had been unable to help. Needing a solution, a friend of theirs had suggested getting in contact with us.

We regularly find solutions for borrower’s with complex income structures and on this occasion we determined that one lender in particular – a high street building society - had the right criteria to match the client’s needs. So, we contacted the business development manager and discussed the merits of this case, including the couple’s longstanding professional experience and the prestigious client list held by the companies. Although not completely in line with the building society’s lending criteria, a senior underwriter was happy to take a view on the case.

Keen to fix their mortgage payments for the foreseeable future, the couple chose a five year fixed rate and we submitted a mortgage application on their behalf. A formal mortgage offer was received within four weeks of the initial enquiry and the couple expect the purchase to complete very soon.

Property value: £940,000

Loan amount: £680,000

LTV: 69%

Rate: 1.99% 5 year fixed

Term: 30 years capital and interest repayment

Mortgage payment: £3,659 pcm

Lender arrangement fee: £999

Consultant: Charlie London

ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.