Case Study: £2.2M property financing for self-employed UK resident
GSB Private Finance was recently presented with a complex lending enquiry – a prominent entrepreneur in the solar-energy industry seeking to purchase a new main residence, but with insufficient personal income, GSB | B Corp? had to deliver a bespoke solution.
Key Details:
The Request
GSB Private Finance were engaged directly by the borrowers as repeat clients to arrange a mortgage against their new main residence.
Both clients had sophisticated income structures and, therefore, needed a lender to consider cash holdings, retained profits and a pipeline of projects to evidence affordability.
Challenges
Solution
~£2,250,000 mortgage over 25 years at a margin of 1.50% + cost of funds without any requirement for Assets Under Management (AUM).
After negotiating the most desired terms and structure with credit teams of a select few lenders, GSB Private Finance arranged a part-and-part mortgage, consisting of an amortised term loan and a bullet repayment after the first 5 years designed to maximise loan-to-value while keeping monthly repayments at an acceptable level.
The agreed structure was as follows:
While the lender was concerned with the comparable lack of personal income and liquidity to service the debt, GSB were able to evidence strong income projections from the self-employed borrower’s limited company through engaging with the client’s Accountant. GSB were also able to evidence assets held in personal and corporate capacities that could be monetised to evidence affordability.
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Partner - GSB Capital
2 周Fantastic, truly bespoke solution - Well done team GSB | B Corp? David Smylie Chartered MCSI