I was recently approached by the CEO of a management company located in Dubai. He wished to buy a new main residential property in South Kensington, valued at £4.5 million and needed a £2.7 Million Mortgage Utilising Bonus Income.
As the client was a non-resident, non-domicile applicant seeking a mortgage in the UK he did not want to remit any money into the UK market for taxation reasons. This was further complicated by the fact that the bulk of his deposit consisted of bonuses that had been advanced by his company – a circumstance that private banks do not usually like.
One might argue that “all income” is one and the same. However, the nature of bonuses – the fact that each lender interprets them so differently and subjectively, alongside the volatility of banking as a whole, places them not only in a different basket, but in a totally different niche, to almost all other income streams.
This meant that I had source a £2.7 Million mortgage utilising bonus income to find him a resolution that enabled him to lend offshore against his assets in order to secure the loan.
I managed to find one private bank to do lending at very competitive pricing. We finalised a solution which enabled him to secure £1.8 million as a Lombard lend against his cash bonus.
This meant that my client was able to finance against his existing collateral – borrowing £2.7 million as a mortgage facility at a rate of 2% above libor. This meant that the funds were also used as Assets Under Management which satisfied the Bank’s criteria for new clients.
Effectively, this solution offered him a 100% loan to value mortgage solution.