Key facts:
Client found his dream property and needed a large £1 Million+ mortgage loan.
As a mortgage over £1 Million is larger than your average mortgage, there were several factors that needed to be taken into account and specific criteria needed to be met.
Our client also needed to look at relevant important insurances to cover the mortgage in case anything happened in the future that meant they were unable to pay the loan.
Our client:
He had found his new home and needed a loan of £1.75 Million to purchase the property. Although our client already had experience with mortgages on previous properties, he had never take out a loan of this size so he didn’t really know where to start.
With a decent sized deposit and good income our client assumed that he would be able to approach any bank himself to secure the loan. What our client did not know is that some lenders do not offer larger loans through their regular high street arms and often they will have extra criteria and requirements that aren’t typically asked of smaller mortgage clients.
How did we help?
Luckily, our client decided to seek professional mortgage help and approached us to see how we could help him to better understand the £1 Million+ mortgage process. Our advisor Oliver arranged a mortgage appointment with our client to get a better and more in-depth understanding of his situation before he made any recommendations.
The first thing that Oliver wanted to determine was the status of our client’s job as many lenders who offer larger loans will want proof of a strong and stable income source.
Through the appointment, Oliver learned that our client had a very good job in a well-known business that he had been a part of for over 11 years. For the last 2 years he had also been a partner in the firm which really played in his favour as this would be considered a strong employment position for the £1 Million+ mortgage lenders.
Now with an understanding of exactly what our client’s situation was and what he wanted to achieve; Oliver could now start forming a mortgage plan of action that would best benefit the client. Years of experience in the large loan market has enabled Oportfolio to build relationships with the large lending teams at many banks.
Oliver was able to contact Natwest’s team directly and talk through the loan application to make the underwriters feel more comfortable about the client and ultimately more comfortable to lend such a large loan.
Because we took the time to understand the client and his needs thoroughly and because we had the resources to speak directly to the large loan team, we were able to get our client exactly what he needed to purchase his new property in a very quick and efficient manner.
He and his family have now moved into their new home and could not be more happy to have spoken to a large loan specialist broker.
What was the rate for the £1 Million+ mortgage?
The loan was secured as a part capital repayment/part interest only mortgage on a fixed rate for 5 years at 1.71%. Our advisor sat down with our client and talked through many different repayment strategies and products and after some deliberation, our client decided that he would prefer to fix his mortgage for 5 years to give himself more security.
After the fixed period, the rate would revert to the bank’s 3.99% standard variable rate. At which time we’ll contact the client again to discuss remortgaging onto a new competitive fixed rate and re-structuring his mortgage.
The overall cost for comparison is 3.4% APRC. The arrangement fee was £995, and early repayment charges were applied. The mortgage term was 25 years.
What other services did we help our client with?
With a large £1 Million+ mortgage it is always advisable to make sure that you have extensive insurances to cover yourself and your family if anything should happen in the future that means you might be unable to pay your mortgage.
Although our client had a good income and stable job, he wanted to ensure that he would not be caught out if his income were to drastically change for any reason in the future.
After speaking to the client and learning his wants and needs and what was most important to him, Oliver formed an insurance plan that would mean our client was covered. We arranged for him life insurance cover and critical illness cover that he pays per month at a manageable premium.
