Accountancy Firm
Our client worked for one of the ‘big four’ accountancy firm. He was hired by another ‘big four’ Accountancy firm and promoted to partner. He also wanted to purchase a £1.4m house, taking out a £840,000 mortgage. However, while his promotion came with a significant increase in income from £500,000 to in excess of £750,000, many banks were not keen to lend to him. As we explained in last week’s blog [] because he was becoming a partner, some regarded him as self-employed and required two years’ worth of accounts to verify his income. As he was only just starting his new role, he didn’t have that level of proof of self-employed income even though he had effectively done the job for several years. Although his higher income meant he could afford the mortgage repayments. The lenders he had approached were not sympathetic with regard to his progression in his career and future income projections. When the client approached us for help, we needed a lender who would consider our client to be employed and base the mortgage decision on his drawings, so tax returns were not required.

Key requirements: –

• A lender who would lend the full £840,000 required to purchase the property. • The lender who understood the client’s income and appreciate that while he had started at a new firm. He was being promoted, and his income had risen accordingly. • An lender offering competitive rate, who would agree to add the fee to the loan. After sourcing the market, we identified lender who was prepared to use the client’s partnership letter confirming. What he was going to draw as the basis for agreeing to the loan. The lender, which happened to be a private bank, agreed to lend the full amount requested at a competitive rate.

The application process:

To support the loan application. The client provided evidence of his income, via his partnership letter, and identity. We were delighted to inform him that a lender had issued a formal loan offer for the full amount requested at a competitive rate. Residential property value: £1.4m Loan amount: £840,000 LTV: 60% Rate: 1.19% fixed for five years A lender product fee: £999 Monthly payment: £3,935