UK Mortgage For US Resident. Purchase of Residential Prime London Flat for £2.3m and borrowing 85% loan to value

By James Mcgregor on Jul 23, 2020

We often work with other professionals in our field and on this occasion Mesa had been introduced to this client through another broker that we had worked with on numerous mortgages in the past. As always there were the initial speed bumps to overcome and the problems on this case were included -

> The clients bonus made up over 7x the basic income.

> The client worked and resided in the US and was a US tax payer.

> To make the purchase feasible the loan to value needed to be at 85% given the size of the stamp duty bill.

> The mortgage offer needed to be issued at pace, due to the competitive market.

As we were introduced to the client so early on during this process we were able to give the client exact numbers and timescales to work with. Prior to the client finding the property we had already introduced them to a private bank we work closely with. This meant that all of the lending was agreed subject to the valuation happening. At the point an offer was accepted, this aloud us to move at a fast pace which was needed in this transaction. The client was up against 2 other purchasing parties, so the speed on the transaction was vital.

Due to the clients income structure it was key that a large amount of the mortgage was to be on interest only to allow monthly serviceability to be affordable. The structure we had agreed was as follows.

Property purchase price - £2,300,000

Max borrowing - £1,955,000 (85% LTV)

Part interest only & part repayment

75% of the mortgage on interest only profile

34 year mortgage term

Interest rate - 2.19%

 

This structure kept the monthly cost under £3,500 per month and allowed the client to make lump sum over payments with no additional fees each year when their bonus is paid. By using the network of Mesa and working closely with the professional team we were able to deliver the above exchange in 17 days for the client, allowing them to buy their dream home.

 

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