The client: Our client is a consultant employed by the NHS, who is remortgaging his £1.75m home. He has also worked variable hours as a locum over the past couple of years so we needed a lender who would take the tax year to date and the client’s P60 into account, rather than his last three payslips, when calculating how much he can afford to borrow.
As well as this, and to complicate matters further, the client also does private work which he invoices directly via a limited company.
We needed a lender who would not only use all three incomes when deciding how much our client could borrow but also base its lending decision on the full amount. Some lenders would regard our client as technically having three jobs and therefore only take say, 50 per cent, of the overall income into account. This would not be enough to give him the necessary remortgage funds he requires.
Key requirements: –
• A lender prepared to take the full extent of the client’s three income streams into account when deciding how much he can borrow.
• A lender willing to add the arrangement fee to the loan.
After sourcing the mortgage market, we identified a lender who agreed to lend the full amount required at a competitive rate. The application process: To support the mortgage application, the client provided details of his various income streams, as well as evidence of his identity. We were delighted to inform him that a lender had issued a formal offer for the full amount requested.
• Property remortgage value: £1.75m
• Loan amount: £1.4m
• LTV: 75%
• Rate: 4.19% fixed for two years
• Lender product fee: £999 added to the loan
• Monthly payment: £7,537