This application was complicated because one of the clients had been furloughed. He has since returned to work on full pay and the couple required a £588,000 mortgage to buy a new main residence. Both clients are employed full-time and have income from a buy-to-let property that would also need to be taken into account.
Numerous lenders were sourced but this was a complex case as we needed a lender who would also consider the last two years’ bonus for one of the clients as additional income to make the loan fit on an affordability basis.
Key requirements: –
• A lender happy to agree to a £588,000 mortgage where one borrower has been recently furloughed and since returned to work on full pay. • A lender prepared to take a mix of employed and buy-to-let income into account, as well as the last two years’ bonuses of one of the applicants. • A lender who would add the arrangement fee to the mortgage.
After sourcing the mortgage market, we identified a lender who would agree to lend the £588,000 required.
The application process: To support the mortgage application, the clients provided details of their earnings, buy-to-let income and bonus payments, where applicable, along with evidence of their identities. We were delighted to inform them that the lender had issued a formal mortgage offer for the full amount requested.
• Property value: £980,000 • Loan amount: £588,000 • LTV: 60% • Rate: 1.34% fixed for five years • Lender product fee: £999 added to the loan • Monthly payment: £1,757