Blairs secured home loan on £20m earnings estimate

Details of how Tony and Cherie Blair managed to bankroll the purchase of their new £3.6m home in London have emerged in documents obtained by The Independent.

Papers filed with the Land Registry in Harrow, north-west London, show that the Blairs' mortgage deal was arranged by the Cheltenham & Gloucester building society, one of the few UK lenders willing to grant multimillion-pound mortgages on the basis of a client's "affordability" rather than annual income. The Blairs' decision to opt for the C&G helps answer the question of how they were able to secure such a big mortgage with only modest savings.

The title documents for the house in Connaught Square, Bayswater, also confirm the sale price as being £3.6m, paid to an art historian, Roger Bevan, on 2 September this year.

Sources close to Downing Street say the Prime Minister managed to negotiate an advantageous deal by claiming that he could earn up to £20m within five years of leaving 10 Downing Street. A "tacit agreement" with a publisher for a seven-figure book deal is said to have helped convince the building society that he was a safe risk.

The Blairs intend to recoup most of the cost of their mortgage repayments, estimated to be £12,000 a month, by letting out the property. Home buyers who use a C&G buy-to-let mortgage must comply with its strict terms. These include only using a "professional letting agency" with whom the client has no previous connection. And the C&G insists the client can only have a "maximum of three buy-to-let properties, plus one residential property with the Lloyds TSB group [the owner of C&G]."

Separate papers lodged with the Land Registry reveal that, at Christmas last year, the Blairs switched from the Halifax to the C&G after taking out a new loan on Mr Blair's constituency home in Sedgefield. Three months later, Mr Blair rejected finance-union calls to intervene to stop Lloyds TSB transferring 1,500 jobs from Britain to India.

Lloyds TSB Group Union, which represents more than 45,000 staff, collected 500,000 signatures from customers outside Lloyds TSB branches across the UK who are opposed to banking services being handled by staff based overseas. But the Prime Minister warned in a speech that outsourcing was "necessary for business to survive" in a globalised economy and rejected calls for "protectionism" to stop the practice.

Under the terms of the land registration, the Blairs were also warned of restrictive covenants in the property's deed relating to land abutting an 18th century burial ground. The Blairs must also not do anything that might interfere with the right to "air and light" of a terrace of mews houses that backs on to their small garden.

News that the Blairs have a house in Bayswater has failed to the lift the local market. None of the four properties in Connaught Square on the market has been sold and estate agents report a "lack of movement".

Start your day with The Independent, sign up for daily news emails
Have you tried new the Independent Digital Edition apps?
ebooks
ebooksAn introduction to the ground rules of British democracy
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
SPONSORED FEATURES
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs General

Recruitment Genius: Travel Customer Service and Experience Manager

£14000 - £17000 per annum: Recruitment Genius: The fastest growing travel comp...

Recruitment Genius: Cleaner / Caretaker / Storeman

£15500 - £17680 per annum: Recruitment Genius: A position has become available...

Recruitment Genius: Head of Sales - SaaS B2B

£60000 - £120000 per annum: Recruitment Genius: This conference call startup i...

Recruitment Genius: Web Developer

£25000 - £30000 per annum: Recruitment Genius: This digital and print design a...

Day In a Page

Blairites be warned, this could be the moment Labour turns into Syriza

Andrew Grice: Inside Westminster

Blairites be warned, this could be the moment Labour turns into Syriza
HMS Victory: The mystery of Britain's worst naval disaster is finally solved - 271 years later

The mystery of Britain's worst naval disaster is finally solved - 271 years later

Exclusive: David Keys reveals the research that finally explains why HMS Victory went down with the loss of 1,100 lives
Survivors of the Nagasaki atomic bomb attack: Japan must not abandon its post-war pacifism

'I saw people so injured you couldn't tell if they were dead or alive'

Nagasaki survivors on why Japan must not abandon its post-war pacifism
Jon Stewart: The voice of Democrats who felt Obama had failed to deliver on his 'Yes We Can' slogan, and the voter he tried hardest to keep onside

The voter Obama tried hardest to keep onside

Outgoing The Daily Show host, Jon Stewart, became the voice of Democrats who felt the President had failed to deliver on his ‘Yes We Can’ slogan. Tim Walker charts the ups and downs of their 10-year relationship on screen
Secrets of comedy couples: What's it like when both you and your partner are stand-ups?

Secrets of comedy couples

What's it like when both you and your partner are stand-ups?
Satya Nadella: As Windows 10 is launched can he return Microsoft to its former glory?

Satya Nadella: The man to clean up for Windows?

While Microsoft's founders spend their billions, the once-invincible tech company's new boss is trying to save it
The best swimwear for men: From trunks to shorts, make a splash this summer

The best swimwear for men

From trunks to shorts, make a splash this summer
Mark Hix recipes: Our chef tries his hand at a spot of summer foraging

Mark Hix goes summer foraging

 A dinner party doesn't have to mean a trip to the supermarket
Ashes 2015: With an audacious flourish, home hero Ian Bell ends all debate

With an audacious flourish, the home hero ends all debate

Ian Bell advances to Trent Bridge next week almost as undroppable as Alastair Cook and Joe Root, a cornerstone of England's new thinking, says Kevin Garside
Aaron Ramsey interview: Wales midfielder determined to be centre of attention for Arsenal this season

Aaron Ramsey interview

Wales midfielder determined to be centre of attention for Arsenal this season
Community Shield: Arsene Wenger needs to strike first blow in rivalry with Jose Mourinho

Community Shield gives Wenger chance to strike first blow in rivalry with Mourinho

As long as the Arsenal manager's run of games without a win over his Chelsea counterpart continues it will continue to dominate the narrative around the two men
The unlikely rise of AFC Bournemouth - and what it says about English life

Unlikely rise of AFC Bournemouth

Bournemouth’s elevation to football’s top tier is one of the most improbable of recent times. But it’s illustrative of deeper and wider changes in English life
A Very British Coup, part two: New novel in pipeline as Jeremy Corbyn's rise inspires sequel

A Very British Coup, part two

New novel in pipeline as Jeremy Corbyn's rise inspires sequel
Philae lander data show comets could have brought 'building blocks of life' to Earth

Philae lander data show comets could have brought 'building blocks of life' to Earth

Icy dust layer holds organic compounds similar to those found in living organisms