Specialist real estate advisory firm Arc & Co. has arranged a £1m mortgage for a property developer client, secured against the borrower’s main residence.
A proportion of the 72% LTV loan was used to repay existing debt, and the rest released as equity to invest into development projects.
The mortgage is for a term of five years at a fixed rate of 5.24%.
Gareth Briggs, Head of Residential UK at Arc & Co., navigated a complex income structure with the lender to get this deal over the line.
“As with many developer clients, income can appear ‘lumpy’. The lender was able to take a commercial view on this and used the latest year’s net profit from the borrower’s company accounts, even though they hadn’t drawn this income, to satisfy affordability.
“We’re pleased to be able to access attractive lending terms for a wide variety of client profiles, including property developers.”