London Law Firm Partner Mortgage With Low Deposit

The Scenario

Our client, a non-equity partner at a large London law firm, was looking to purchase their first property. They found a property in North West London for £1.9m, but their substantial deposit of £95,000 only represented 5% of the purchase price.

Based on the client's recent and current income, they could not afford the monthly payments of the £1.8m mortgage. However, due to their recent change in circumstances, the next two years would see a significant improvement in their earnings.

The property was in need of renovation, so the client needed to keep as much cash in the bank as possible for works to be done. And the vendor had asked for a speedy turnaround to exchange, which added to the complexity. 

Our Solution

We were able to use our private bank contacts to source a lender who was comfortable with considering the client's future potential earnings to make the loan amount affordable.

We arranged the loan at 95% loan to value (LTV), so the client only had to fund 5% of the initial purchase. We were able to secure the loan by agreeing to bring the overall LTV down over a 5 year period, to get the loan back within the lender's comfort zone. We did this by structuring three products side by side, which worked within the client's budget.