Case Study:
Million Pound Mortgage – Short Trading History
The Requirement: A million pound mortgage based on a purchase price of £1.35m The clients jointly own a media agency in London which had been trading for 3 years but only recenty started showing large profits, as is usual with start ups.
The Solution: Most lenders base their income multiples on an average of the last 2-3 years trading figures. We approached a lender who would base the loan on the last year’s income and a projection for the current year backed up with management accounts. The clients could show a long track history in their sector and strong client bank to further support the application.
The Loan to Value was good and apart from the comparably short trading history there was nothing wrong with the case. We achieved 1.89% over Base for 3 years with no early repayment charges.
The Broker: Islay Robinson
