The client: Our client is in his forties and buying his first home with his wife for just under £1m. He works for a well-known global company with his income derived in India, so his payslips are subject to exchange rate fluctuations. As he plans to take on a fairly large mortgage and has dependents, he also wanted it to be fully protected.
Given the client’s age, the exchange rate fluctuations impacting his income and relatively large loan and high loan-to-value, this was a complex case requiring a lot of digging to find the right lending solution. We also needed to source sufficient life cover for our client on competitive terms.
Key requirements: –
• A lender prepared to lend based on the client being paid by an Indian company, resulting in exchange rate fluctuations and varying payslips.
• A lender willing to add the arrangement fee to the loan.
• Competitively-priced full mortgage life cover for the client and his dependents.
After sourcing the mortgage and insurance markets, we identified a lender who agreed to lend the full amount required at a competitive rate. We also identified an insurer who would offer the required life cover with guaranteed premiums, 24/7 virtual GP appointments and personalised mental health support, among other benefits.
The application process: To support the mortgage application, the client provided evidence of his income and identity. We were delighted to inform him that a lender had issued a formal offer for the full amount requested. He also supplied information on his health and lifestyle; we were able to confirm competitive life cover for the full amount requested, ensuring his mortgage would be paid off were anything to happen to him.
• Property value: £970,000
• Loan amount: £727,495
• LTV: 75%
• Term: 27 years
• Rate: 4.92% fixed for two years
• Lender product fee: £1,495 added to the loan
• Monthly payment: £4,062
• Decreasing term assurance
• Sum assured: £727,495
• Term: 25 years
• Premium: £68.45 per month
