Is a majority of your income made up of complex remuneration streams? We are experts at arranging large mortgages with private banks who are happy to lend to individuals with a sophisticated financial structure.
To discuss this or any other large mortgage case, please contact us.
Case profile
Our clients are first-time buyers looking to purchase a £3.8m residential family home. The sole earner worked as a senior investment professional at an international investment bank. Therefore, our client’s income is largely made up of non-guaranteed annual bonuses, a mixture of cash and stock awards paid in USD. An interest-only mortgage would help them control monthly costs and match cash flow effectively.
We needed to source a private bank that understood that they had a high income despite our client’s financial setup. They required 85% of the property value covered by a mortgage due to assets tied up in investments that could not be broken or would have been imprudent to do so. Consequently, the maximum deposit our client could put down was 15%. In addition to this, our client preferred to secure a loan without requiring any assets under management.
Solution
Only a few private banks were willing to lend to our client, and only one bank was happy to offer a mortgage without using our client’s assets under management as security. This arrangement gave our clients more control over their assets and financial flexibility.
The bank and clients were keen to arrange capital repayments to reduce the mortgage over time. We managed to negotiate attractive bespoke terms for our client to reduce the loan by 10% (so down to 75% LTV) over five years using bullet payments (singular annual payments) timed to suit their income stream (receipt of bonuses).
Our clients are delighted with their long-awaited dream family home while managing to retain control of their assets which have great potential for the future.
