3 day approval on a million pound 100 percent flexible offset mortgage

Area
Hertfordshire
Capital Raised
£975K

When you have complex income sources and flexible cash reserves your broker needs to find a mortgage solution that makes the most of your money.

The Scenario

This was a client who emailed us on a Sunday, and we were able to talk to them on the phone the same day. They’re busy business-owners: a husband-and-wife who run a successful company doing refits on commercial premises.

Business had been good and they were looking for a larger family home. They had their eye on an 8-bedroom Grade II listed former farmhouse in Hertfordshire, costing £1.3M.

They had £300K ready as their deposit, but they had an additional £1M available in cash reserves which they accessed regularly to pay their clients. They were looking to borrow the remaining £1M on the purchase price, but they had some flexibility on the size of the deposit they could put down.

The Solution

This was a case of leveraging our clients’ liquidity to get their money working hard for them.

  • An offset mortgage would allow them to keep their cash reserves in a savings account linked to their mortgage, and still have access to them for business purposes.
  • Many lenders only allow a 50% offset facility, but we found a 100% flexible offset mortgage product which would make their mortgage interest-free.
  • By increasing their equity by £25,000 the cost of their borrowing would be reduced by £4,000 a year.

An additional issue: in the preceding year their company had done a major refit project in an overseas tax haven, and had formed a separate company to handle the project and remit the income back to the UK. Lenders like to be able to see the record of tax paid on income.

The first lender we approached was concerned about whether the UK company’s earnings were sustainable. So we quickly took their application to an alternative lender offering equally competitive terms, who would be satisfied by an accountant’s reference confirming that the previous year’s income had been UK-generated, and the current year’s income-to-date was also generated in the UK.

Within three working days we had the borrowing signed off and approved by the lenders’ senior underwriter.

Jack Spillane

Finance Broker

Bristol

0117 959 5094

Is your situation similar to this? I specialise in helping clients who need creative development finance solutions, and second-charge mortgages. Give me a call any time and we can set up a detailed discussion of the finance you need.

Mathew Phillips

Finance Broker

Bristol

0117 959 5094

Are you in a similar situation? I specialise in bridging finance at Clifton Private Finance - I will find you the best funding solution for your property transaction.

Alex Chambers

Senior Finance Broker

Bristol

0117 403 4324

Are you in a similar situation? I am a specialist in residential and investment property finance for UK and international clients at Clifton Private Finance. Please don't hesitate to get in touch for a no-cost discussion of the finance you need.

Luther Yeates

Senior Finance Broker

Bristol

0117 244 5561

Are you looking for a similar type of property finance? I have extensive experience finding residential and investment property finance for UK and international clients. Please get in touch and we can arrange a time that's convenient for you to discuss your situation.

Sam ONeill

Senior Finance Broker

Bristol

0117 959 5094

Is your situation similar? I am a bridging finance specialist at Clifton. I can find a quick, cost-effective solution for the funding you're looking for.

Robert Gibb

Senior Finance Broker

Bristol

0117 959 5094

Are you looking for mortgage or short-term finance for residential or buy-to-let property (including HMOs)? I have extensive experience in finding property finance solutions for UK and international clients, both as individuals and limited companies. Please give me a call and let me see what I can do for you.

Adam Arnott

Associate Director

Bristol

0117 205 0214

Is your situation similar to this? I have extensive experience of advising clients who need creative property finance solutions. Please get in touch and we can arrange a time that suits you for a detailed discussion of your requirements.

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