Darren Wright, a limited company director of Allseas Global Logistics, a shipping company, found it impossible to secure a mortgage on the high street recently due to the structure of his business.
Wright approached several high street banks through his mortgage broker, Largemortgageloans.com, to get a mortgage for his purchase of a £1.3m farmhouse that is being renovated in Greater Manchester.
He needed to borrow 82 per cent of the property’s value, but was refused a loan by several banks, including Northern Rock, his existing lender, due to his retained profits and the accounting structure of the business.
Wright was forced to turn to the private banks for help. His broker was eventually able to get him an attractive rate with Barclays Wealth, the private bank, on an interest-only basis at 82 per cent loan-to-value.
“It was quite challenging to get a mortgage,” says Wright. “I did get quite a few knockbacks from high street lenders which was quite frustrating.”
Wright is happy with the deal he has secured. “The deal itself was very good. Barclays Wealth were happy with what they saw and knew my background and personal status.”