£1.3m interest-only mortgage | LDN Finance

£1.3m Interest-Only Mortgage for a London Residence Ahead of a New Senior Role

Article by Martin Ball Mortgage Adviser - Private Clients

What was the situation?

Our client, a senior legal professional, had accepted a new role in London. She wanted a home near her new workplace, but did not want the change of job to dictate what happened to her main residence in Wiltshire.

Her plan was to retain her existing home and mortgage, while purchasing a second residence in the capital. This would give her a personal base in London without requiring a permanent relocation.

The client had a substantial cash deposit available and wanted the new borrowing arranged on an interest-only basis. She could then reduce or repay the balance over time and review the mortgage as she approached retirement.

What was the issue?

When the application was submitted, the client had left her previous position and was completing a period of garden leave. Her new appointment, salary and start date were confirmed, but she had not yet begun the role or received any income from it.

The lender was therefore being asked to agree a £1.3m interest-only mortgage using a salary that had not yet come into payment. The client would also retain the mortgage on her Wiltshire home and own two residential properties.

This combination narrowed the choice of lenders. It also meant the application had to distinguish a planned move between two senior appointments from the uncertainty lenders can associate with income that has not yet commenced.

What was the process?

Martin Ball – Mortgage Adviser, Private Clients, set out the employment timeline, including the client’s departure terms, garden leave, confirmed new position and agreed start date. He connected the London purchase directly to her new role and made the continuity between the two appointments clear.

Drawing on his experience arranging high net worth mortgages, Martin identified a lender with a large loan team that could consider the complete picture. The team was initially cautious about the timing, so Martin dealt with it directly, answering its questions and providing the detail needed to establish the client’s position.

Her confirmed salary was sufficient for affordability without including projected bonus income. Her substantial deposit and wider financial position strengthened the application.

Martin also showed why an interest-only mortgage over a 14-year term was appropriate. It allowed the client to retain both homes, make capital repayments at a time of her choosing and review the borrowing well before retirement.

What was the solution?

The lender agreed a £1.3m interest-only mortgage at 76.5% LTV, enabling our client to complete her £1.7m London purchase before her new role began.

She retained her main residence and its existing mortgage, while beginning her new position with a London home already in place. The mortgage also gave her the option to reduce or repay the balance earlier as her plans developed.

Martin turned the timing of the client’s employment change from a reason for lender caution into a clearly presented case for lending. The required mortgage was agreed before she received her first salary from the new role.

The outcome reflects Martin’s experience presenting high-value mortgage applications for senior professionals between confirmed roles and working directly with large loan teams when timing falls outside standard criteria.

High-value lending solutions with LDN Finance

Are you looking to purchase a new property but have a complex income structure? We’re here to help you find a solution – no matter how complex your circumstances. At LDN Finance, our specialist brokers have extensive experience in providing creative solutions to secure large loans for our clients.

We work closely with our trusted network of private banks and both high street and specialist lenders to arrange bespoke mortgage arrangements to suit your circumstances at competitive, market-leading rates. 

Get in touch with us to organise an initial consultation.

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