Single applicant seeking 75% mortgage on £1,975,000 property purchase

Interest-only £1,481,250 mortgage required

Complex bonus income with minimal employment track record

Our client

The client was a single mortgage applicant without spouse or children.

What was needed?

The client was seeking a 75% mortgage of £1,481,250 on a property purchase of £1,975,000.

What was the challenge?

The client wanted the entire 75% mortgage on an interest only basis, and his bonus remuneration arrangements were complex.

The client was due to be paid an annual bonus in March of the year he wished to purchase the property however the bonus payment was limited to 85% of the full bonus amount with the remaining 15% paid over the forthcoming 3 years, at 5% intervals.

The following year the client will receive another bonus of 85%, plus the 5% owing from last year’s bonus, with the balance of the 15% again being deferred over 3 years.

After staying with the company for 3 years the client will then receive a bonus of 85% + 5% + 5% + 5% = 100% each year.

The other complication was the client’s employment track record. He only started working for his company in August 2020 so the first bonus he received was March 2021.

How we provided the solution

Jerome Fick Executive Director, quickly grasped the complications around his client’s mortgage case and set to work finding an appropriate lender at a competitive mortgage rate.

Jerome researched the mortgage market and identified a suitable lender who was willing to accept the client’s complex bonus income arrangements and offer an interest-only mortgage at this level of borrowing.

The client was pleased when the mortgage offer was issued on the precise terms he needed.

What was the rate?

The interest rate was 1.43%