Buy-to-let partnership income mortgage for law firm partner buying new-build high-rise flat
Client situation
Trinity Financial's broker was approached by an existing client who needed help arranging a buy-to-let mortgage to purchase a new-build high-rise flat.
The client was a partner at a law firm, and their substantial income was shown as partnership income in their tax calculations, rather than on standard employed income.
They had already paid a deposit on the flat and were under pressure to complete during the summer, so the mortgage application needed to be handled quickly and carefully. They were keen to get a competitive fixed rate with a low setup fee.
The mortgage required
| Case details | Information |
|---|---|
| Mortgage type | Buy-to-let purchase |
| Client occupation | Partner at a law firm |
| Income | £250,000+ |
| Income type | Partnership income from tax calculations |
| Property type | New-build high-rise flat |
| Loan-to-value | 75% LTV |
| Repayment method | Interest-only |
| Lender | Large high street bank |
| Mortgage offer timescale | 10 days |
| Application submitted | 19 May |
| Mortgage offer issued | 29 May |
| Client source | Existing Trinity Financial client |
Top-slicing used to boost the loan size and qualify for a better mortgage rate
This was not a straightforward buy-to-let mortgage application.
The rental income from the property was not strong enough to meet the lender’s standard buy-to-let rental stress test on its own. The client, therefore, needed a lender that would allow top-slicing, in which personal income is used to support the rental calculation.
This was made more complex because the client wanted to borrow at 75% loan-to-value, and many buy-to-let lenders are more cautious at this level, especially when the rental income does not work without additional personal income support.
The property itself also added complexity because it was a new-build high-rise flat. Some lenders apply tighter rules to new-build flats, high-rise blocks and properties with certain construction or building safety considerations.
Why the client needed Trinity Financial’s help
The client had used Trinity Financial previously for a residential purchase and returned because they needed a broker with experience in placing more complex buy-to-let cases.
There were three main issues to solve:
- Finding a lender prepared to offer 75% loan-to-value on a buy-to-let purchase.
- Securing a lender that would allow top slicing because the rent alone did not support the loan size.
- Presenting the client’s partnership income clearly so the underwriter could assess affordability correctly.
The solution
Not many lenders were willing to support the case at the required loan-to-value, even with the client’s significant income. However, our broker secured a fast mortgage offer with a two-year fixed rate from a well-known bank, priced at around 5% with a £999 arrangement fee. The rate was marginally lower because the property had a high EPC rating.
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The information contained within was correct at the time of publication but is subject to change. It is for general information purposes and is not advice.
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