The client: A self-employed finance worker who runs a successful company but does not have much history with his self-employed status. The client was previously employed within the banking sector, but has now been self-employed for 1 year. Most banks would be excluded as they usually require a minimum of 2 years trading history.
The property: The client wanted to re-mortgage his 4 bedroom house in Surrey worth £800,000.
The finance: The client wanted to re-mortgage and try and release some equity to support his business, he only had a small mortgage currently of £202,000 but he wanted an additional £100,000 which meant total lending of £302,000:-
– A 5-year mortgage (as rates are currently low and the loan to value Is low which means risk free for the bank, also the client didn’t want to move or change anything for another 5 Years minimum)
– Interest only as they wanted to keep the payments minimal over the next few years while the business starts
I needed to consider 1 Year self-employed and interest only when placing this as these are the complications.
The Application: Once I had found the lender it was very quickly moved to survey and mortgage offer. I managed to move the application forward with speed as I had already pre-empted and requested all the documents.
Property value: £800,000 Loan amount: £680,000 LTV: 85% Rate: 1.79% 2 year Fixed Term: 25 Years Lender facility fee: £999 added to the loan Monthly payment: £1,016
Detail correct at the time of sourcing their deal.
