Why are London City mortgages more challenging to arrange?

As the spiralling property demand in the capital continues to push the limits of London City mortgages beyond the lending allowances of many high street lenders, securing a mortgage is getting more complex. 

If you’re looking at central London postcodes – from Knightsbridge and Chelsea in the west to Canary Wharf and Hackney in the east and from Islington and Notting Hill down to Clapham – you may need to look to different sources to secure a mortgage.

 

Talk to the London city mortgage experts.

Call us on 0344 346 3672

or enquire now

Overcoming the complexities of the London market

It’s a complicated market. Many people looking for a London City mortgage may be doing so with earnings based heavily on city bonuses, which may not be fully recognised as income by mainstream lenders. 

The cost of prime locations means that multiples on salaries are severely tested, even for high net worth individuals. 

Also, competition from other buyers can be fierce in London. The ability to move swiftly to secure a mortgage offer can be the difference between moving in or losing out.

The personal approach to securing your London City mortgage

As independent experts with years of experience helping high net worth individuals secure London City mortgages, we take a personal approach to help you get the mortgage – and therefore the property – you want.

Our experts will come to your office or home at your convenience to discuss the kind of mortgage you need and to understand your current financial position.

As long-established independent London-based mortgage advisers, we have fast and direct access to a range of lenders. We’ll match your borrowing needs with the most appropriate sources, many of whom are private banks with whom we have strong personal relationships.

We’ll work to create a mortgage that suits your personal needs.

We’ll take care of all the paperwork, only involving you when there are decisions to make or documents to be signed.

When you find the property you want we can talk directly to the Estate Agent so they know you have solid finance in the pipeline, potentially getting you ahead of the competition.

We had started talking to two mortgage brokers, but Peter’s personable manner and obvious expertise inspired such confidence that we were left in no doubt as to which broker’s advice to follow.

In less than 3 weeks Peter had managed to guide us from initial fact find to having a mortgage application approved – all the while keeping us well-informed with the process and what we needed to do next.

Peter is an asset to the organisation and I will definitely recommend him to any friends or colleagues looking for a mortgage.

PK, John Charcol client, March 2015

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As a guide, you could potentially borrow around:

 

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Frequently asked questions

How much of my bonus can be counted as earnings for a London City mortgage application?

That depends on the lender. Some High Street lenders will use 25% of the last bonus added onto the basic salary... some will take 100% and others are in between. John Charcol knows who is best to call when bonuses are part of the equation.

If the high street lenders tell me I can’t get the multiple on my salary, are there other places I can go?

Yes. We deal with regional building societies, private banks and other niche lenders who will look at each client on an individual basis. The range of income multiples can be five times salary or more with some lenders, subject to status and criteria of course.

As a foreign national, can I still get a UK mortgage?

It helps if you are living in the UK, but if you are outside of the UK we can still look at your case. It really helps if you have a global tax adviser or work for a large international corporation. Keep in mind there are some countries that have strict rules about borrowing money for a property purchase.

Can you help me to arrange a mortgage around my intense work schedule?

At John Charcol we’re used to working with clients, including high net worth individuals, who are under real time pressure. That’s why we come to you and fit in with your schedule.

I want a flexible mortgage that allows me to use my bonus to reduce it each year in significant payments. Can that be arranged?

We’re expert at arranging this kind of mortgage, making the best of low rates of borrowing with capital payments when bonuses are available.

Can I speak to someone who understands and works with my real circumstances rather than computer-set limitations?

Yes. Our consultants are all experienced mortgage advisers. We often arrange London City mortgages through reputable private banks and investment houses that are more flexible in their approach to lending.

Why John Charcol?


Legal

YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY DEBT SECURED ON IT.

John Charcol is a trading name of John Charcol Limited and its Appointed Representatives. John Charcol Limited is authorised and regulated by the Financial Conduct Authority. The Financial Services Register number is 665649. Registered in England No. 9157892. Registered office address for John Charcol Limited is 5th Floor, Cutlers Exchange, 123 Houndsditch, London, EC3A 7BU. The FCA does not regulate some investment mortgage contracts. Calls may be recorded for training and monitoring.