I was approached by a couple who were struggling to find a lender who would agree the large mortgage they needed to fund their new home purchase. While my client had a stable job as a trader in the City of London his basic salary was relatively low and his bonuses formed around 75 per cent of his total income. Lenders typically find it challenging to consider bonuses as income as it is an inconstant stream.
The lender was prepared to lend £520,000 on an interest only basis – equivalent to 50 per cent of the property value – while the remaining £230,000 was on a capital and interest basis. The clients benefited from a three year fixed rate at a competitive 3.49 per cent and the lender did not require any further collateral or any assets to be transferred to their management.
Clients often turn to us because we have access to underwriters who are prepared to consider an income stretch for City clients with large bonuses. This certainly helped my clients in this instance obtain the 750k large mortgage.