CASE STUDY
You’ve found the perfect location and home but securing the mortgage has proven difficult. Many aspiring homeowners encounter this very challenge when navigating the complexities of securing a mortgage, particularly if you have a more intricate income.
This was precisely the situation for our recent clients who set their sights on a stunning, newly built duplex apartment in the heart of Covent Garden, valued at £3m.
To purchase their dream home, they needed a £2.25m mortgage. However, a previous adviser had discouraged them with the all-too-common response, “We can’t place this case for you.” Unfortunately, this scenario arises when advisers lack the expertise to navigate the complexities of non-standard income structures and effectively present a client’s financial profile to lenders.
Overcoming the Obstacles
Let’s delve into the challenges that made our clients’ case more complex. While they received a standard income paid in GBP (£), a significant portion of their income came from annual bonuses paid in USD ($). To demonstrate affordability, these bonuses needed to be factored in. This presented a major obstacle for the previous adviser, as many lenders traditionally don’t consider income in USD. However, our experience in navigating these situations allowed us to overcome this hurdle.
As the case progressed, we encountered another unexpected challenge. The valuer required an ESW1 form, specifically for high-rise buildings. Thankfully, this was another obstacle we were well-equipped to handle. We alleviated our clients’ stress by directly contacting the selling agent to obtain the document.
The Final Result
We were thrilled to secure our clients their desired outcome of a 75% Loan-to-Value (LTV) mortgage, allowing them to proceed with the purchase of their £3m Covent Garden home. Additionally, we identified a gap in their insurance coverage – it wouldn’t adequately cover their mortgage in the event of an unforeseen circumstance. With our support, we also secured them life insurance to protect against the new mortgage debt.
Stephen Bourke, Senior Mortgage & Protection Adviser at Henry Dannell, commented:
“We were delighted to be able to secure our clients’ ideal outcome, especially when they were initially told it was unachievable. There’s no greater satisfaction than bringing that joy to a client. Our market knowledge and experience in handling high-value mortgages and foreign income allowed us to place the case with the right lender, and extend our service beyond the mortgage itself, to secure them with adequate mortgage protection.”
Do you require a mortgage with a complex income structure?
Our experienced team is here to help. Contact our mortgage specialists today to discuss your options.
Please note: a mortgage is secured against your home or property. Your home or property may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.
