Location: Kensington, London

Loan Amount: £3,570,000

Finance Category: Residential Mortgage

The Story

Fox Davidson were approached by a couple who were both investment bankers looking to purchase their first home. Both clients were employed and each of them had a carried interest position which was part-vested. They were also looking to borrow a relatively high loan-to-value on a large loan during the Covid pandemic.

The Challenge

Lenders had really pulled back from their higher loan-to-value lending during the Covid pandemic.  Much of the client’s income was received as bonus payments and we needed to take the future carry into account when assessing overall affordability.

The Solution

Fox Davidson used our connections with lenders to discuss the case in detail and explain the future income situation of our clients. We worked closely with a lender to create a bespoke solution that would allow maximum flexibility whilst giving the lender some longer-term comfort on the loan to value.

We were able to secure an 85% loan-to-value mortgage on a 5 year fixed rate at 2.99%, arranged on an interest-only basis.  We agreed the clients would then make an annual capital reduction during the first five years in order to bring the loan-to-value down to below 80%.  This worked well for the clients as they could use part of their annual bonus to make the capital reduction each year.

 

Fox Davidson

Fox Davidson is an award-winning team of property finance consultants. To discuss your property funding requirements, please email enquiry@foxdavidson.co.uk or call us on 0117 989 7950.

Sarah Fox-Clinch

Director & Property Finance Consultant

About: Sarah has been in the mortgage industry for over 20 years and has amassed considerable experience in complex lending situations. Her passion is assisting clients with high value transactions, property with acreage and lending based on complex income. Sarah’s work ethos is to focus on each individual and give the time and support needed to help them move forward with their lives.

Favourite Film: Alien or Blade Runner

Quote: “Wanting to be someone else is a waste of who you are” – Kurt Cobain