Our client, a HNW individual, was looking to buy a £2.5m home in London to be used as a main residence.
Income was complex, with a mixture of property income and a large cash holding soon to be invested.
Despite the lack of traditionally accepted income or historic evidence of the investment income, the potential income from financial investments combined with the property income was sufficient to make the mortgage affordable, and by finding the right specialist lender we were able to obtain a very competitive solution.
By working with the client’s accountant, it was decided that rather than arranging the mortgage on the new main residence, a better solution was available.
By raising a £1.5m mortgage on the holiday let property with a private bank at competitive rates we enabled a cash purchase of the new home. As the holiday let mortgage had significant tax benefits compared to simply raising the funds against the new residence, it was decided that this was the optimal solution.
This is a great example of how we look at the overall client situation and work with other relevant parties to obtain financially optimal solutions.