Rob Jupp (pictured) is chief executive at Brightstar Group
Last month the Brightstar Group launched a new evolution of our Private Label proposition as an expert service for complex high-value mortgages to help brokers place residential first charge cases of more than £500,000. With these cases, it’s not so much the loan size that causes the issue but the fact that a larger loan will often include circumstances such as complex incomes, non-standard property types, foreign nationals or the need for higher income multiples.
So, what types of cases have we seen so far?
Here are a couple of examples of cases where Private Label was able to deliver solutions when alternative options had failed.
Case study 1
The client was a large portfolio landlord, with more than 100 properties that were held in a mixture of personal name and limited company ownership. His main job was a large-scale property developer and the majority of his income was held in director’s loans, retained profits etc.
The client’s actual tax returns showed that he had drawn an average income of around £80,000 average over last two years, but he was looking for a mortgage of £2m on a property of £3.5m for his main residence.
Despite this, and the complexity of the client’s income streams, we were able to secure a mortgage with a private bank on a 5-year fixed rate of 2.74%.
Case study 2
The client had found a large property with planning permission to knock down the house and replace it with a larger home as a self-build project. He wanted to retain his existing property to live in while the new home was being constructed.
We were able to work with a private bank to help refinance the existing residential home, raising more than £500,000 to help fund the deposit on the new property. We were also able to obtain a £975,000 mortgage on new property, plus a further £500,000 loan to help towards the build cost.
Overall, we secured nearly £2m in funding, which meant that the client was able to start building the new house with a mixture of his own funds, refinance monies and an initial land loan. The client and his family were able to stay in existing house, upon the condition that they would sell and reduce down the overall debt once their new home was built and old residential home was sold.