Case Study –Limited Company with Foreign Income | Second Home Purchase

Value	£4,000,000
Loan	£2,000,000
LTV	50%
Achieved Rate	1.19%
Term	5-year fixed

The Client

Our client had found his dream country home, located on the coast in SE England. The house was in excess of £2.7m, with costs. He was also planning to undertake a full refurbishment of his London home, and required a loan in the region of £4.56m, to fund the purchase and renovation of both properties. Our client is an entrepreneur who also runs his own company, with income sources from the US and Singapore. He had initially approached a bank directly, however, they were unable to assist as the currency on his account was in dollars. For many lenders, they are unable to take into account any income originating in different currencies on the accounts.

The Solution

We were able to source a lender willing to lend on the basis that the client’s accounts showed sufficient income, despite originating in US and Singapore dollars. We were then able to construct a deal that allowed our client to borrow 50% LTV (£3m), of the value of his unencumbered London home which was estimated to be worth £6m. At 50% LTV, an interest-only facility was available at 1.14% fixed for 2-years. For the property on the coast, more flexibility was required, we, therefore, limited the loan to 60% LTV to achieve the most competitive rate and opted for a 2-year tracker that allowed for overpayments, costing 1.39% - giving a marginal rate of 1.23% across the two properties.

The Henry Dannell Difference

In sourcing a lender that understood our client's income, we were able to arrange a solution that offered the client competitive terms on both of his properties, which helped to ensure the loan to value remained low, providing access to the best available rates.