- Four-bedroom townhouse with self-contained flat and separate kitchen/bathroom
- Retained profits used onto top of limited company income
- £600,000 mortgage to purchase £800,000 property
Our clients asked for help to secure a mortgage to purchase a four-bedroom townhouse with a self-contained flat. The basement flat had a separate kitchen and bathroom, and it was going to be used for a family member to live in. They had applied directly to their bank, and the application was declined.
The couple ran a limited company that had not been negatively affected by the coronavirus pandemic. They need a lender to use their retained profits to access a larger mortgage loan.
How did we help?
Trinity's broker contacted a large bank offering very cheap rates, with a track record of providing mortgages to limited company directors with retained profits, as well as an appetitive to lend on larger properties other providers are not keen on.
In addition to the standard application form and supporting identification, the lender also wanted to see the latest three months business and personal bank statements. The mortgage offer was produced within two weeks.
Why was it difficult?
While many lenders are happy to provide retained profits mortgages, they are not always willing to accept properties with self-contained flats.
This application was more straightforward because the basement flat was going to be used for a family member to live in. The property was not let out and it did not have a separate address for utility providers or council tax.
What was the rate?
A 1.59% rate fixed until 31/1/2023, and after the fixed period it reverted to the banks 3.59% standard variable rate. The overall cost for comparison is 3.2% APRC. The arrangement fee was £999, and early repayment charges applied. The mortgage had a 25-year term.
Call Trinity Financial on 020 7016 0790 to secure a mortgage or book a consultation