£3.6m London Purchase with Two Existing Mortgages in Place – Barrister Income and Large Loan Structuring

Our clients, a practising barrister and a senior investment banker, had an established relationship with LDN Finance, with existing mortgage arrangements in place across their respective London properties.

When they identified a £3.6m London property requiring extensive renovation, they were clear that neither existing property would be sold ahead of the purchase. As a result, the transaction required a new mortgage to be structured alongside two existing facilities, with all borrowing remaining in place.

The barrister held an offset mortgage with approximately £1.6m in linked savings, while the investment banker had borrowing of over £1m secured against their property. With neither property being sold ahead of the new purchase, both existing mortgages remained in place.

For a purchase at this level, most lenders would treat these commitments as material liabilities, assessing affordability against total outstanding debt rather than servicing costs. Under standard criteria, this would have rendered the transaction unworkable.

The structure therefore needed to accommodate three concurrent mortgages alongside planned renovation expenditure, while aligning with a defined strategy to reduce their overall debt position as the existing properties were sold in due course.

Colin Anderson, Executive Director, positioned the case with a lender whose dedicated large loans team assessed affordability based on the clients’ income and overall financial position, rather than the level of existing borrowing.

From the outset, Colin engaged directly with the senior underwriting team, presenting a clear and structured view of both clients’ income, assets and liabilities, alongside the short-term nature of the overall structure. This ensured the case was assessed on its underlying merits, with a clear understanding of the clients’ full financial position.

Income structuring required careful presentation across both profiles. The barrister’s earnings were positioned to reflect the variable and self-employed nature of income at the Bar, aligned with the lender’s specific assessment approach, while the investment banker’s remuneration incorporated bonus income and a considered view of their substantial savings position within the wider financial context.

The new mortgage was structured on a part-repayment and part interest-only basis. The barrister applied a portion of their existing savings as a deposit, retaining a substantial balance within the offset arrangement and continuing to service interest on the net position.

LDN Finance advises members of the Bar and their families on mortgages, property finance and protection. For specialist advice on barrister mortgages, visit ldnfinance.co.uk/high-value-mortgages/barrister/