Large value loans: A consumer perspective on the market right now.
It’s always great to hear what the experts think about the opportunities and challenges facing individuals looking for larger loans. But, sometimes, you just need to go straight to the source to find out what people really think.
That’s why, as part of our latest residential property market report, we chatted to one of our long- standing customers, Ken Roscoe, to get his take on the changing market for successful self-employed individuals like himself.
Ken’s view
“As an architectural designer and developer for over 25 years, I’ve worked on homes from £5 million to more than £80 million for clients in France, the Caribbean, and all over the UK. My own home was an investment project that truly was a labour of love.
Having created homes for many successful individuals, it’s clear there’s a ‘trickle down’ effect from the super prime market to the prime market. Not for taste and style, but for standards. High value properties are now expected to have higher standards than ever before – for example, ample home working space is a hygiene factor for luxury buyers now. But those requirements and expectations can vary based on stage of life. From third homes and onwards, people are asking ‘what’s important to me?’, and ensuring that they create living spaces that deliver just that. On the whole, it’s fewer rooms that are bigger with often multiple high-spec en-suite bedrooms.
But it’s not always plain sailing. I’m a director of nine companies, and it can be a real problem to secure a mortgage – and there are many others in the same situation.
Proving affordability is one of the greatest obstacles to securing high street lending for people who may take their income from many different sources, and whose wages may not be consistent from month to month. On top of that, many projects get stifled when lenders can’t see the potential in a property investment.
This isn’t just my experience. For example, an acquaintance founded and owns a law firm and his income can be ‘lumpy’ from basic salary to irregular dividends. Another person I know works in the hospitality sector and takes an income from many different sources in a year. He doesn’t know exactly what his order book will look like from year to year as it will only fill up three to four months in advance.
My own income can be irregular. Of course there’s a business plan in place, but going to the bank for a mortgage isn’t a simple case of saying “this is my income”. Many lenders rely on automated affordability checks, so they may come back with a ‘computer says no’ response.
People’s incomes are becoming more and more complex, with us seeing a rise in well-paid consultants and others with multiple forms of revenue, so I think we’re going to see a greater need for specialist mortgage lenders such as Together, to provide a service for these kinds of borrowers.”
Ken’s story
When Ken – the owner of the UK’s 'Garden of the Year' 2022 – wanted to buy the £2.5 million country hall he’d been leasing for a decade, it seemed a natural choice to approach a trusted lender he’d built a relationship with on several commercial projects.
We were able to iron out the complexities of the mortgage deal, including taking into account Ken’s multiple income sources as a self-employed company director, and fund the purchase of the stunning 17th century estate.
Offering a dedicated, personalised service, Together considers the more complex situations that can arise when lending to affluent individuals, including those that mainstream lenders often struggle to help.
So, if you’re looking for a lender that can apply a common-sense approach to your request, instead of solely relying on automated processes, get in touch to see if we could help you achieve your property ambitions.
Any property, including your home, may be repossessed if you do not keep up repayments on your mortgage.
All lending decisions are based on lending criteria and, where applicable, subject to credit check and an assessment of individual circumstances.
All mortgages are subject to our terms and conditions.
Loans offered by Together Commercial Finance Limited are not regulated by the Financial Conduct Authority.
Articles on our website are designed to be useful for our customers, and potential customers. A variety of different topics are covered, touching on legal, taxation, financial, and practical issues. However, we offer no warranty or assurance that the content is accurate in all respects, and you should not therefore act in reliance on any of the information presented here. We would always recommend that you consult with qualified professionals with specific knowledge of your circumstances before proceeding (for example: a solicitor, surveyor or accountant, as the case may be).
