If you’re a key part of an organisation’s leadership team, you may be surprised at how difficult it can be to secure a mortgage. Roles including Chief Executive Officer, Chief Finance Officer, Chief Operating Officer, Chief Information Officer and Chief Marketing Officer usually attract six-figure salaries within large companies. However, a significant portion of income is often performance-related, and this can cause an issue for some lenders.
In our recent case, our clients needed to remortgage their £2.5m home and raise capital to cover a temporary drop in income, caused by our client taking on a new directorial role. The reduction in income was fully expected to recover later in the year when a bonus package would be paid out.
A further complication was posed by the fact that the property our client was looking to remortgage had a self-sufficient annexe. Several lenders don’t accept properties with an annexe as they’re wary of the danger for unauthorised tenants to gain rights of occupation. If this were to happen, it would be very difficult for the lender to sell the property in the event of them taking possession.
With specialist knowledge at our fingertips, our team found a large loan underwriter with lots of experience in working with C-Suite clients. Therefore, they understand the way their remuneration packages work and the kind of properties they own. Our team secured the required interest only mortgage at an incredibly low rate, based on the understanding that the client’s income will increase significantly when their bonus package is realised.
If your role includes an element of performance-based pay, it can be harder to find a lender who will take your full salary into account. This is an area in which we have decades of experience and countless happy clients. Don’t hesitate to contact us to find out how our team of experts may be able to help you realise your full borrowing potential.