An investment banker was looking for a £1.7 million mortgage on a property he wanted to buy valued at £3.1 million in North London.
He had been a client of ours for many years and we had watched his bonuses increase year on year and his bonus income represented a significant part of his total income. His financial profile was perfectly adequate for the mortgage he required.
However, he had recently moved employers. Consequently he was having problems raising finance as many lenders will not arrange a mortgage allowing for bonuses as it is not factored in their affordability calculations unless it has been earned with the same employer. This is because lenders often favour the stability that someone who has worked at the same company offers.
We were able to make sure that the client’s long bonus history was credited for this application; indeed, the lender agreed to apply 75% of his latest year’s cash bonus.
The mortgage was approved at 1.99% over base for 5 years.