£1 million mortgage for limited company director with large increase in profits
Key features:
- Limited company director with £10,000 loss followed by £500,000 profit
- 1.64% five-year fix with 25% deposit
- Mortgage agreed by policy exception
The client:
He owned a manufacturing company and over the last two years invested heavily in the business resulting in £10,000 loss followed by a £500,000 profit. He had a letter from his accountant explaining how there was such a large increase in his profits.
What was he looking for?
He wanted to purchase a £1.4 million property and secure a £1 million mortgage. He wanted a capital repayment deal over a longer term to minimise his monthly repayments.
Why was it difficult?
Most of the mortgage lenders will not accept applications from limited company directors when they have a significant rise in their profits. Also, our client had five buy-to-let properties in his portfolio.
How did we help?
Trinity’s broker approached the large loan lending team at a bank offering one of the most competitively priced five-year fixed rates.
After we explained why the client had operating losses followed by a significant profit, and that it was backed up by the accountant, the bank accepted the case. They also made a policy exception as the client had five properties in the background, rather than the bank’s maximum limit of four.
What was the rate?
We secured a 75% loan-to-value mortgage on the property on a five-year fixed rate of 1.64% with a 3.4% APRC. There was a £999 arrangement fee and a free property valuation. The mortgage reverted onto the lenders 4.19% standard variable rate.
The offer was produced within a week.
Call Trinity Financial on 020 7016 0790 to secure a limited company director mortgage
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