Location: Bath

Loan Amount: £550,000

Finance Category: Residential Mortgage

The Story

A limited company director approached us as he owned his property outright and was looking to raise £550,000 capital in order for home improvement.

His business partner had recently used Fox Davidson for a property purchase and recommended he speak with us.

The Challenge

The client’s home was currently mortgage-free, so this was a pure capital raise on an unencumbered property.

The sum being raised was substantial, which can raise eyebrows with lenders.

The applicant was a director of a successful internet-based retail company and owned a 33% shareholding.

The Solution

Firstly, we asked the client for both his company accounts and his last two-year personal tax calculations.

Although he took salary and dividends from the company, we wanted to check whether we may have more affordability by looking at his salary plus 33% of the company net profit, instead.

We also asked for a link to the local planning portal so we could check the planning permission for the remodelling of the house.

This was a substantial amount of work and the lender would need to be comfortable that the necessary permissions were in place for the home improvements.

We asked to see a quote from his builder for the works.  Again, the lender would need to be comfortable that the works being done were covered by the sum being raised.

The client wanted to drawdown the whole amount on day one, as he didn’t want a lender continually assessing works for stage drawdowns.

He was also eager to fix the rate for five years – having the security of a low rate for the next five years would be beneficial for him and his young family.

Fox Davidson were able to secure him a five-year fixed-rate at 1.27%.  He is now starting the build and able to continue at his own pace.

 

Fox Davidson

Fox Davidson are an award-winning mortgage broker with offices in Bath, Bristol, Exeter, and London. Funding is available from £300,000 and up to £200 million.

For more information on residential mortgages for home improvement, limited company directors, residential remortgage, or the self-employed, 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