The client is a UK resident and a young professional in the banking sector looking for his maximum mortgage amount with annual bonuses factored in. He and his wife were looking to upsize and needed to explore his maximum borrowing potential in order to finance his ideal family home. They were looking to get the maximum mortgage amount with annual bonuses that they could. Brokers would only be able to secure 5 times basic salary and a maximum of 50% of his bonus.
This makes it difficult for bankers and employees in the financial sector whose income is predominantly made up of regular bonus payments. Although they are able to afford the mortgages, we see many clients in the same position, unable to finance houses in London because of the strict inflexible lending criteria in the market today
We were able to raise a mortgage with a lender that was able to take a common sense approach, looking at the client’s situation as a whole taking 100% of the client’s bonus, as it had been regular over the last 3 years. This was equivalent to 9 times his basic salary on an interest only basis, which is a very positive result in times where lenders are so rigid in their lending policy especially on the High-street.
This flexibility was great for our client and his young family allowing them to buy a larger property suitable for the longer term, eradicating the need to upsize again in the next 5-10 years, which of course would have incurred further costs and disruption.