Mortgages for Business is committed to keeping both our staff and clients safe during the COVID-19 outbreak while maintaining the best service possible. Our teams are working from home, but don’t worry, you can still contact us in the usual ways.
To read our comprehensive FAQ guide on how the emergency interest rate reduction and Coronavirus outbreak could affect your mortgage, please click here.
If you want to request a payment holiday, please contact your lender directly. For lender contact details, click here.

Developer with complex income secures interest-only mortgage

The client is a successful developer who runs each development through separate Special Purpose Vehicle limited companies. Because of this, the companies showed a mixture of losses followed by high profit in differing years.

The client was hoping to buy a new home and despite having a large deposit was struggling to secure a mortgage directly with conventional lenders because his income streams were difficult to understand – he draws only a modest salary plus dividends from the SPVs. Also, the client wanted interest-only terms which few residential mortgage lenders will consider.

We approached a specialist bank whose underwriting team is trained to understand complex income structures and allows interest-only terms on a case-by-case basis.

An offer was promptly issued and the application proceeded without a hitch.

Interest-only terms were offered because the client could demonstrate access to sufficient funds, via his other properties, to repay the debt.

Here are the details of the deal.


Property value: £2,600,000

Loan amount: £1,400,000

LTV: 54%

Product: 2.09% tracker for 2 years

Term: 8 years interest only

Mortgage repayments: £2,438 pcm

Lender arrangement fee: £999 added to loan amount

Consultant: Jeni Browne

Consultant tel: 01732 471647

Consultant

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

Get in contact with us: 0345 345 6788 or ...

Submit an enquiry
Arrange a call back